Latisys Expands, Eyes Managed Services

Latisys Expands, Eyes Managed Services

latisys-managed-servicesLatisys is in growth mode. The Fairfax, Va.-based company, which focuses on data center services, was built on acquisitions and continues to seek deals going forward. Here's where Latisys is heading next.

Latisys was launched two years ago as Managed Data Holdings, with backing from Great Hill Partners and Catalyst Investors. Three acquisitions soon followed.

  • Managed Data Holdings acquired InteleNet Communications, Irvine, Calif., in October 2007
  • In early 2008 Managed Data followed up with the purchase of Data393 in Denver.
  • In August 2008, the company acquired Stargate in Oakbrook, Ill.
Those assets now operate under the Latisys label, which debuted in March 2009.

“We are actively exploring other opportunities,” said Don Goodwin, Latisys’ executive vice president of sales and marketing.

Colocation is core to the company’s expanding operations, but the company also sees opportunities in managed services.

“We see increasing interest in RMM [remote monitoring and management] services,” Goodwin noted, adding that customer may also want to tap Latisys’ facilities as a storage backup resource.

Goodwin said managed services “provide a surround” encompassing the company’s core colocation services and managed hosting. A company might start out as a colocation customer, but decide later to augment that arrangement with a managed backup service. Latisys’ data centers offer disk-based backup as an alternative to tape.

In addition to RMM and backup, the company’s roster of managed services includes storage, VPN, firewall, and intrusion detection services. The company’s current business mix is 80 percent colocation, 10 percent managed hosting, and 10 percent managed services.

Terremark, meanwhile, also provides a combination of colocation and managed services. The hybrid strategy leans more toward managed services, which account for 60 percent of its business. But the company holds that colocation supports managed services and vice versa.

A recent Latisys’ customer win lends support to the full-service approach. NetQuote, an online insurance marketplace, selected Latisys for colocation services, but the company also cited Latisys’ “suite of IT infrastructure solutions,” including managed computing.

It will be interesting to see whether Latisys’ next acquisitions expand its managed services line of business.

Contributing blogger John Moore covers Master MSPs, Web hosts and emerging opportunities. Follow MSPmentor via RSS; Facebook;; and Twitter. And sign up for our Enewsletter; Webcasts and Resource Center.
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