'A marriage of equals': World's two largest independent solution providers join forces

Curvature's UK boss emphasises that his firm is open to partnering with authorised suppliers as it announces merger with its closest rival SMS Systems Maintenance

Systems Maintenance Services (SMS) and Curvature are merging to create an independent IT support and hardware powerhouse with revenues north of $500m, including a $25m UK business.

SMS' private equity backers, Partners Group, has bought into Curvature and will now meld the two outfits together, with the merger set to close in February.

Founded in 1981, SMS' pedigree is in providing independent support for HP, IBM and Dell servers and storage, while Curvature - founded in 1986 - is a pre-owned Cisco equipment specialist.

Talking to CRN, UK country manager David Howard said the plan is to double the size of the enlarged firm's UK business, which he said currently turns over $22m to $25m, over the next five years.

"The two companies have a great pedigree in opposite ends of the datacentre, so this is a true marriage of equals, rather than the consumption of one company by another," he said.

Although OEMs keep a "cautious eye" on independent providers, operating outside authorised channels means Curvature enjoys a big advantage over the likes of CDW, Softcat or Insight, Howard argued.

"We aren't saying everything must be in your datacentre for 10 years. It's about giving the customer the freedom to choose what they do and how they do it."

"The disadvantage of being linked to the OEMs as closely as some of the VARs are is that you have a target and with that target you actually alter your behaviour to that customer. Being an independent allows you the freedom to not be encumbered by a target," he said.

"I'm not saying that everything should last longer. It's about looking at Pareto's law and saying 80 per cent of your equipment could probably stay in longer than five years - upgrade what needs upgrading. If you look at the access layer of the network, for example, switching and routing is pretty stable; where you should make your investments is wireless networking and the bleeding edge stuff."

Although Curvature sells mainly direct, Howard - who himself used to work for Kelway (now CDW) - stressed the firm is not combative towards authorised partners.

"We want to grow, so we are happy to partner with people, as long as their OEM relationships will allow it," he said.Save and request publish

Although he name-checked regional competitors such as Park Place in the US, Blue Chip in the UK and France-based IB Remarketing, Howard claimed the enlarged firm - which will be renamed SMS | CURVATURE - has no genuine global competitors. It will have revenues of about $540m and 2,000 staff.

The UK business comprises a Richmond office courtesy of Curvature and four offices - in Leeds, Bracknell, Wiltshire and Birmingham - from the SMS side.

"We are on an aggressive growth curve for the UK business," Howard said. "We would like to double that business within the next five years or so."

Despite being a source of hardware for Curvature and SMS through overstocks, vendors such as HP and Cisco have an ambivalent attitude towards independent providers, Howard admitted.

"In 2014 HP said you can't get firmware without buying our support. The attitude has changed in that they are penalising the customers for wanting to hold equipment for longer than they think is necessary. We aren't saying everything must be in your datacentre for 10 years. It's about giving the customer the freedom to choose what they do and how they do it."

Howard stressed Curvature employs a whole team dedicated to remaining compliant, adding that the firm strictly vets the kit it sources to check it is not part of any discount fraud.

"As long as you play within the law you are beyond reproach," he said.