‘We got far ahead of the curve’: Cobalt CEO on telecoms operations and tech opportunities

Ian Dunstan talks revenue growth, client base evolution, and doing business “the Devon way”

Founded in 2001, Cobalt has expanded its expertise from solely IT to telecoms.

With revenue standing at £2.8m in FY24, 70 per cent from telecoms and 30 per cent from IT, the organisation expects a ten per cent turnover increase by year end, CEO Ian Dunstan tells CRN.

He explains that, over the last decade, traditional telephony transformed as VOIP adoption accelerated and the copper network switch off approached.

Being IT-based, the firm recognised the shift early.

“We went headlong into it and got far ahead of the curve,” Dunstan says, adding that although some competitors have since caught up, Cobalt believes it remains at the forefront in how it implements systems, uses AI transcription, and runs sentiment analysis on call recordings.

“The IT side of the business did not disappear, but it shrunk because it was a crowded and confused market. Now the opportunities with data, AI, technology, and security are significant.”

The CEO notes a five-year plan for growth, with AI and automation playing a major role.

The firm also plans to build on its model of technical advisory managers and a virtual chief security information officer (vCSIO), using these roles to support, train, and educate customers on defending themselves against attacks and ransomware, while also helping them take advantage of rapid AI developments.

Dunstan adds that projected revenue growth will come from bringing in new customers and selling further services to its telecoms client base rather than acquiring other businesses.

Customer base stretching from Devon to France

Cobalt currently looks after 800 customers across the UK.

On the telecoms side, it also reaches into America, Spain, the Netherlands, and France through franchises rolling out their model on top of the company’s technology.

“The UK southwest is our heartland, but we have more work going through the M4 corridor into London because they like the skills and expertise we have, with the slightly more laid-back Devon way,” Dunstan says.

The MSP takes an agnostic approach to clients and works with many small businesses, often around ten people, across sectors such as manufacturing, hospitality, law firms, accountants, and professional services.

“Compliance becomes risk, and when there is risk, certain things must be put in place. Anything financial and legal is a vertical we are driving into, but we are also making our other customers compliant before they need to be,” says the CEO.

The company expects its account base to grow by 20 per cent over the next 12 months, around 160 new clients.

Cobalt employs 18 staff, with six or seven people currently in sales.

“I have also taken on an MD [Chris Thomas] for the IT side of the business. A big hire, but necessary for us to transform.”

The organisation also plans to hire further engineering talent, including someone with full Microsoft certifications.

“The professional services arm will handle automation, learning, understanding customers and helping them evolve. That is where the growth is.”

Partner relationships

The partner identifies itself as a major Kaseya house and uses the vendor’s full stack to streamline operations and improve integration.

The CEO also notes that IT Glue has become central for documentation, as well as their quote manager, which automates quoting for sales and bolts into distributors such as TD SYNNEX, Ingram, and Exertis.

“We also use a lot of LastPass, NordVPN, some ESET, and are looking at ThreatLocker for zero trust solutions,” he highlights.

“Inforcer is a game changer. Their Microsoft partnership is big for us. It lets us manage all tenants in one place with a Cobalt best practice baseline.”

The MSP uses Exclaimer for email signatures.

In addition to distributors, it also partners with cloud commerce marketplace Pax8.

Resisting macro challenges and encouraging the youth

While Cobalt has been on an upward trajectory, some of its customers, especially manufacturing exporters, have struggled with macroeconomic pressures, including Brexit, COVID and US tariffs.

Internally, it continues to hire and promote, bringing on apprentices every year to grow its own talent.

“Apprenticeships have helped us bring in female technicians. It is great to give people that opportunity.”

Dunstan says this focus on new recruits comes from a desire to encourage younger talent.

“I am 51. For me to evolve and keep learning takes more effort. I have biases from experience. Younger people see things differently, especially with technology.”