Cloudreach acquires US-based platform Cloudamize

AWS and Azure partner Cloudreach promised rapid growth after being acquired by Blackstone in February

Amazon Web Services and Microsoft Azure partner Cloudreach has acquired Philadelphia-based cloud migration platform Cloudamize.

Cloudreach was acquired by private equity giant Blackstone earlier this year and signalled it was set for aggressive organic and inorganic growth.

Cloudreach CEO Pontus Noren explained to CRN that the Cloudamize platform automates a lot of processes involved in planning and migrating businesses to the cloud.

"Cloudamize, both in planning and migration, gives us a tool that we own, control and can develop to automate a lot of these processes and combine the software with smart people," he said.

"From an efficiency perspective and a cost perspective it is cheaper to do that than have hundreds of people in a low-cost location, so this changes the way IT works in our minds which is why we're super excited. It adds a lot of value to us and our customers."

Channel partners

Cloudamize has built up its own ecosystem of channel partners over its five-year life, which Noren said will still have access to the Cloudamize platform.

Cloudreach has also developed its own software internally, which could utilise the Cloudamize channel in the future.

"This doesn't necessarily scale our business it terms of what we do, but it complements what we do and is something we can bring to our customers which is more comprehensive," said Noren.

"They have largely gone to market through a channel model so they've been building channel relationships with a whole range of people, some of whom are our competitors, which is why we've had a few people asking questions [such as] 'is it a merger or is it an acquisition?'

"We're trying to balance that and maintaining that channel is our intention."

Pontus also highlighted Cloudamize's development team in India as key to the deal, adding that Cloudreach will continue to invest in this part of the business, as well as in Cloudreach's own software capabilities.

Continued growth

Cloudreach said it would look to invest in geographic expansion, software capabilities and managed services following the investment from Blackstone in February.

Since the deal, Cloudreach has increased its headcount by 100 to 350. It has also opened a new office in Dallas, with Noren saying that further openings are on the cards.

In terms of future growth, Noren said a plan has been put in place that will involve further acquisitions.

"There are a couple of puzzle pieces missing, in terms of what we want to be as a complete business," he said.

"We have drawn up a strategy where we will balance what we're building ourselves and what we need to acquire for scale, geographic reach, or capabilities."