Cloud Services Providers, Like MSPs, Pursue Acquisitions

Cloud Services Providers, Like MSPs, Pursue Acquisitions

Move over, managed services providers (MSPs). Your close cousins -- cloud services providers -- also are pursuing mergers and acquisitions at a frantic pace. The latest evidence -- Internap buying Voxel for $30 million -- arrived earlier today. In some ways, the Internap-Voxel combination also involves a touch of managed services.

Voxel positions itself mainly as a cloud services provider with managed hosting services mixed in. Also, Internap offers remote monitoring services that optimize customers' on-premise networks.

But the Internap-Voxel deal -- which involves substantial debt -- does not resemble many of the SMB-centric MSP mergers that popped up this week. Internap is paying about $30 million for Voxel, which has about about 50 employees and 1000 customers worldwide. Internap will pay an additional $5 million over the next two years if Voxel hits certain, undisclosed, financial targets.

For small MSPs the message is clear: The big are getting bigger. In addition to Internal buying Voxel, Best Buy has completed its buyout of mindSHIFT, which offers both cloud services and managed services. For MSPs serving the SMB market, it's time to visit customers and make sure those local relationships are tighter than ever.

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