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2nd Watch Buys Aptitive for Cloud Data Expertise as Channel M&A Ramps Up2nd Watch Buys Aptitive for Cloud Data Expertise as Channel M&A Ramps Up

The cloud MSP will combine capabilities to help enterprises “make smarter business decisions.”

Kelly Teal

January 5, 2022

4 Min Read
Cloud network and data
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Cloud managed services provider 2nd Watch is buying Aptitive, citing the latter’s expertise in cloud data and analytics.

Seattle-based 2nd Watch, which is privately held, did not disclose what it paid for Aptitive. It did, however, say why it bought the company: for more heft in helping enterprises use data to make smarter business decisions.

Indeed, this need has grown greater in the cloud era and in the wake of remote work fueled by COVID-19. Employees generate more cloud data than ever — within applications and personal files, on social media feeds and smartphones, and more. Organizations require the ability to analyze all of these (and other) sources of information. The results allow them to spot trends in customer demands and satisfaction, identify unused or underused resources, and determine profitable strategies. MSPs such as 2nd Watch aid end users in these endeavors.

Existing Capabilities

To be sure, 2nd Watch already runs a cloud data and analytics practice. It provides data strategy, migration and management; platform selection and implementation; pipeline development; and other services. 2nd Watch will add Aptitive’s capabilities – and staff – to that roster.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup. Then check out what we thought were the biggest mergers and acquisitions of 2021!

The fit looks solid. 2nd Watch teams with the Big Three public cloud computing vendors (Amazon Web Services, Microsoft Azure and Google Cloud). Aptitive, too, holds deep expertise with each of those same providers, among others. At the same time, the Aptitive acquisition gives 2nd Watch expanded reach within the media and entertainment, health care and retail verticals.

2nd Watch's Doug Schneider

2nd Watch’s Doug Schneider

“The strategic and cultural fit with 2nd Watch is incredibly strong and further accelerates scaling both our data and application modernization services as we continue building an enduring cloud-native solutions provider that enterprises trust,” said Doug Schneider, CEO of 2nd Watch.

Paul Corning, CEO of Aptitive, agreed.

Aptitive's Paul Corning

Aptitive’s Paul Corning

“We are thrilled to gain the support and breadth of services that 2nd Watch brings to our Aptitive employees and clients,” Corning said. “Like Aptitive, 2nd Watch combines deep technical skills, top consulting talent and strong culture to deliver outstanding results for its clients. Together we can offer more services, more exceptional performance and a deeper bench across more technologies and skill sets.”

Channel M&A Ramping Up — And It’s Only Jan. 5

The purchase of Aptitive marks 2nd Watch’s first acquisition in its nearly 12-year history. And, Schneider told Channel Futures, “it won’t be our last.”

“We will be very selective and deliberate about making future strategic acquisitions and are not pursuing a roll-up strategy,” he said. “Our growth strategy will continue to focus on expanding our capabilities in the PaaS layer related to data-centric and application modernization solutions, along with vertical market capabilities. Ultimately, future growth will also be complemented by geographic expansion beyond the U.S.”

Already, 2022 appears to be a year ripe for channel M&A. Just five days into a new year – and one still burdened by a relentless, economy-straining pandemic, at that – the transactions have begun to fly. So far, Google Cloud has snapped up Siemplify, Variant Equity is buying MSP CompuCom Systems from Office Depot, and Fishtech Group and Herjavec Group have merged. Meantime, Channel Futures is aware of more deals companies will announce soon (track those stories here).

The strength and numbers of the activity are significant given that 2022 has only just started and COVID-19 continues to do it best to hamper the economy. Channel companies engaging in M&A might also have to consider whether the Great Resignation will affect any planned transactions. If the first five days of the year provide any indication, though, the pandemic and peoples’ job changes might not hold much power to hinder channel firms intent on M&A, especially in hot areas like cloud data.

Want to contact the author directly about this story? Have ideas for a follow-up article? Email Kelly Teal or connect with her on LinkedIn.

 

About the Author(s)

Kelly Teal

Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC. Follow her on LinkedIn at /kellyteal/.

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