Inside Crayon's AI-fuelled growth and the future after Mooney
The Norwegian reseller is leveraging Microsoft Copilot, strategic acquisitions to double business and maintain investor confidence
Norwegian reseller Crayon recently reported a 17 per cent increase in gross profit driven by software, cloud and AI at the forefront, says CEO Melissa Mulholland in an interview with CRN.
"From a compound annual growth perspective, we've been growing at an average of around 26 per cent per year. This growth is propelled by our software and cloud offerings, as we continue to see strong demand despite tightening budgets, economic conditions, and potentially rising inflation," she explains.
"Companies require further licensing to digitally support their customers and employees, driving this sustained demand."
Mulholland says that Microsoft Copilot has been another catalyst for Crayon's growth.
"As one of the largest Microsoft partners globally, ranking third, we are well-positioned to benefit from the AI revolution."
The partner opportunity in AI
"While Copilot itself is captivating the market, what is often not explained is the preparation required to leverage such AI technologies effectively.
"Implementing Copilot or similar solutions is not as simple as installation; it necessitates readiness through training and securing data estates."
She argues that this complexity is creating significant demand as customers navigate their AI adoption journeys.
"We are helping them navigate this complexity, further driving our growth."
Use cases
Mulholland speaks about how organisations need to adapt their day-to-day mindset and habits to reap the benefits of genAI.
"It's crucial to have distinct use cases and a well-defined business plan for how the technology will be utilised.
"Let me give you an example from a law firm we worked with in Singapore. Their goal was to create efficiencies for their lawyers, so they wouldn't have to spend time on tedious contract evaluations and other tasks that could be automated through AI.
"This would allow the lawyers to focus on more strategic cases.
"Before implementing AI, it's essential for companies to carefully evaluate their use cases.
"Adopting new technology can be costly, and realising productivity and efficiency gains requires proper planning and execution.
"This is where Crayon's differentiator lies – our customer and customer-centric business model guides and supports organisations throughout their entire AI adoption journey.
"This end-to-end support has been a significant driver of our growth."
As the company moves forward, Mulholland says its main objective is to continue supporting its clients through its software and cloud offering, helping them optimise their businesses to enable innovation.
"This translates into a focus on areas such as data and AI. Big data is a significant area of focus for the company, and I'm proud to say that we've really accelerated our efforts in this domain since the start of 2024 with the launch of Microsoft Copilot and our status as a leading Copilot partner for Microsoft's Cloud Solution Provider programme."
Read on to find out Crayon's strategy for 2024 and beyond...
Inside Crayon's AI-fuelled growth and the future after Mooney
The Norwegian reseller is leveraging Microsoft Copilot, strategic acquisitions to double business and maintain investor confidence
Steadying the ship
From a financial perspective, she says Crayon has been focused on improving liquidity, as the global market and investors demand greater fiscal prudence as the economy remains fragile.
"Working capital management has been a significant focus for the company, given our rapid growth journey. During my three years as CEO, we have doubled our business in terms of gross profit and profitability, which is a tremendous achievement. We have doubled down on collections from our partners and customers, generating robust cash flow.
"I'm pleased to say that over the past few quarters, we have made substantial progress in this area. While there is no magic solution or quick fix, it ultimately comes down to implementing robust processes and maintaining discipline.
"This is crucial because we must demonstrate to our investors and the market that we have a strong cash position that ultimately translates into sustainable performance."
She says that actively managing its working capital through efficient collections and cash flow generation has been instrumental in supporting Crayon's accelerated growth trajectory while maintaining financial stability and investor confidence.
However, she adds, the company has also been committed to growth from day one, primarily measured through gross profit.
"It's crucial that we don't lose sight of this growth imperative, particularly in the UK market, where I see significant potential for expansion through our channel partners and by enabling customer preparedness.
"Additionally, I'm proud to share that we've been recognised multiple times as a great place to work.
"Ultimately, scaling success relies on fostering a culture that enables people and empowers them to deliver exceptional experiences for our partners and customers, which remains a core priority."
M&A on the horizon?
Crayon acquired Australian cloud specialist rhipe in 2021, as part of its global expansion plans and Mulholland tells CRN how that's provided a springboard to scale to expand into the APAC market which would have otherwise taken a lot more time and effort.
"When we acquired rhipe, it gave us tremendous scale across Australia, New Zealand, and Southeast Asia - a footprint we could not have built on our own in such a short time," she says.
"Now that the acquisition is complete, we have been positioning the business for continued growth.
"We certainly have opportunities to pursue further expansion in markets like the UK, US, and parts of Europe, which are areas of focus for me."
She says Crayon is still very open to inorganic growth opportunities overall.
"Historically, our business model has been driven primarily by organic growth, but strategic acquisitions like rhipe provide us with a catalyst to rapidly expand our global presence and capabilities."
A future after Hayley Mooney
Former Crayon UK MD, Hayley Mooney recently announced she was leaving her position at the company to move back to Bytes as COO.
CRN asked Mulholland about this change in leadership at Crayon and how the future will look without Mooney.
She says: "Firstly, I have a very close relationship with Hayley, and I asked her to step into the general manager role for the country.
"It was incredible to watch her grow and build up the team. I'm quite proud of her for being able to establish such a solid culture and leadership team.
"While I have mixed feelings - grateful for her achievements but saddened to see her leave for an external opportunity - I respect that it was a personal decision she felt she had to make.
"The good news is that she has built a strong team and leadership structure, so we don't have a leadership void currently. Greg Smith has stepped in as the interim lead, ensuring business continuity and team support.
"I'm very confident in our capabilities here, and it's been wonderful to see the team face-to-face this week."
Regarding Mooney's full-time replacement, Crayon is looking for a strong people leader, which was one of her strengths, coupled with the ability to understand both the channel and our direct customer relationships.
"That sales acumen is vital. For me, the UK is one of our most strategic markets globally, so we need someone who can envision and drive the potential for growth over the next 3-5 years to double or triple our business here.
"I'm seeking a quite senior leader who can take the team to that next level."