Microsoft partner New Signature has snapped up Paradigm systems, a fellow partner of the US giant, after initially meeting and working together through a "partner-to-partner" (P2P) model.
Paradigm is a Microsoft partner specialising in Active Directory, Exchange and desktop migrations, which was founded in 2003 and has offices in London and Cape Town.
New Signature is a US-based MSP which made a significant investment in UK Microsoft partner Dot Net Solutions last May, prompting the firm to change its name. The company has more than a dozen Microsoft Gold competencies.
New Signature claims that the addition of Paradigm to its UK business will elevate its existing portfolio of offerings by providing scale and expertise in infrastructure and application services.
The duo have worked together in the past on customer solutions, but have now linked up formally for an undisclosed sum.
Dan Scarfe, founder of New Signature, explained to CRN how the partnership developed.
"We've been talking for a while and one of the most important things is that there is a cultural fit over and above everything else," he said. "We worked on major accounts together to get a good sense of how the teams worked together and it was a resounding success. P2P was an important part of why we did the deal."
The P2P trend has taken off in the channel over the past couple of years, with vendors such as Microsoft and Cisco encouraging their partners to work together to fill the gaps in one another's portfolios, often acting as a matchmaker for possible partners.
Microsoft partners Cloudamour and RedPixie joined forces under similar circumstances at the end of 2015. But although the trend appears to be enjoying success, Scarfe said it is not without its challenges.
"P2P is always a challenge as you compete to a certain extent and you work together to a certain extent," he said. "But in the space we are in now, there is a dearth of skills. In terms of working practices and sharing trade secrets about how we go to market, it's a challenge, but the whole point is that you're going to a customer with a joint proposition so it's all part of that cultural fit and engagement. It works well."
He said Microsoft did not directly match-make the two companies, but they did meet through the vendor's Partner Advisory Board.
Scarfe added that the two businesses are extremely complementary.
"The thing we really liked is that they are a MSP with recurring revenue," he said. "A large proportion of their business is recurring, which is great. It's absolutely where we want to continue to invest."
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