Summary: Canadian MSP Carbon60 acquired OpsGuru, a cloud consultancy based in Vancouver, BC.
Details: OpsGuru is a young company founded in 2017 and has about 70 people. The team is split between HQ in Vancouver (around 30 people) and offices in Tel Aviv, Israel and Romania. OpsGuru supports all three major clouds – AWS, Microsoft Azure, Google Cloud – with just around half of its business coming from AWS. The rest of the business is split between Microsoft and Google. A majority of the business comes from Canada, though the Google Cloud business is handling customers mostly in the US and Europe. OpsGuru has built its calling card around managing Kubernetes and helping customers move to public cloud with cloud-native architectures. It has seen steady and aggressive growth, with the business more than doubling in 2020.
What the deal brings: The combined company will have 160 people and gives Carbon60 new development resources in EMEA. Importantly, Carbon60 adds a Google Cloud practice while enhancing resources and capabilities with AWS and Azure. The biggest pieces of this puzzle are OpsGuru’s Kubernetes expertise and the Cloud LaunchPad product. OpsGurus has a strong reputation in Kubernetes and builds cloud-native architectures for clients. Cloud LaunchPad is both proprietary technology and a consulting service. There are automation tools and templates, that combine with professional services, to help accelerate application modernization and migration to cloud.
MSP and cloud consultancy combinations: MSPs that are infrastructure-centric provide the ongoing management and managed services capabilities that cloud consultancies tend to lack and this has driven transaction activity across the sector. In this case, Carbon60 gives OpsGuru customers the ongoing management expertise and support they are increasingly ask for. Getting to the cloud is just a first part of the journey. Optimization, fine tuning, monitoring and management is a process that does not go away and arises on day one once an organization gets to cloud. Cloud consultancies are going to continue have difficulty building this out organically from the ground up.
Angle: Carbon60 has now made three acquisitions since partnering with M/C Partners as investors back in 2019 and getting a public cloud focused shop was a priority. This deal ticks off a number of boxes: a book of business, multiple public cloud support, differentiation through Kubernetes and development resources. The Cloud LaunchPad platform is also something it can operationalize internally and get efficiency and scale from. The match is a good one as both OpsGuru and Carbon60 are bringing complementary areas of expertise. OpsGuru, as a young company, also did not invest heavily in sales and marketing – areas Carbon60 and M/C are equipped to help in, which should help drive upside. Overall, the combination gives Carbon60 the ability to manage and drive value for a customer across the increasingly long and complex timeline of cloud transformation. Familiarity should help both hit the ground running as Carbon60 and OpsGuru worked on some opportunities together in the last year.
The post Carbon60 acquires OpsGuru; complementary capabilities, scale for managed cloud in Canada appeared first on Structure Research | Cloud, Hosting & Data Centres.