The Synergy Seemed Right: Simnet Buys Scaleforce On DevOps Quest
To expand its platform-as-a-service capabilities and deepen its expertise in DevOps, Simnet, a Toronto-based cloud, cybersecurity, and managed services provider, has acquired the EU-based DevOps firm Scaleforce. Ted de Vos, president and founder of Simnet, shares insights into this strategic acquisition aimed at amplifying Simnet’s services and market presence.
“We adopted platform-as-a-service and then started working with people in the DevOps space, which wasn’t one of our core strengths. We found a company in the E.U. that is excellent at it, and started working together for about a year, and the synergy seemed right. I wanted a DevOps team, and I wanted a cloud lead on our side, someone in charge of our cloud experience. Scaleforce was the company that fit that bill, and so we acquired it,” de Vos explained.
Simnet saw this acquisition as an opportunity to not only gain instant credibility in the DevOps sector but also to enhance its cloud services and bolster its European footprint. By acquiring Scaleforce, Simnet secures access to a seasoned DevOps team and a European cloud hosting business, paving the way for significant growth in the EU market.
The acquisition of Scaleforce also aligns with Simnet’s overarching strategy of maintaining control over its offerings. “I like to own everything,” de Vos states, emphasizing his preference for controlling customer experience and service offerings directly rather than through partners.
Expanding European and Global Footprints
With a presence already established in the U.K. and France through Canadian company expansions, the acquisition of Scaleforce allows Simnet to enhance its market reach in Europe, increasing its annual recurring revenue by approximately 5%. This move exemplifies Simnet’s ambition to solidify its presence and achieve 50% growth year over year as part of its expansion strategy, which includes launching services in Singapore to target markets in India and South Africa.
Why Own Your Cloud?
Simnet’s decision to build its own cloud infrastructure highlights its commitment to control and customization. Instead of relying on hyperscalers, Simnet builds or adapts platforms to meet specific client needs, ensuring security and performance. “We own the relationship with our customers. So we don’t outsource anything. Everything we do, we own and we control,” de Vos asserts.
This philosophy of ownership extends to the development and management of its cloud services, utilizing the KVM hypervisor to maintain full control over operations and client solutions. It allows Simnet to deliver a dependable and secure service experience without deferring issues to third-party vendors.
Simnet’s Forward-Looking Strategy
Beyond integrating Scaleforce’s team and technologies, Simnet is expanding its AI and GPU infrastructure services and enhancing its single-click deploy solutions to advance ease of use for clients. Additionally, the launch of new services in Singapore is a testament to Simnet’s global aspirations.
Simnet’s approach aims to revolutionize how businesses deploy infrastructure and services, focusing on simplifying processes through innovative user interfaces that prioritize security, performance, and manageability. By reducing complexity, Simnet empowers clients to efficiently deploy and scale services, embodying the trend of simplifying what is typically a complex technological landscape.
The Strategic Importance of The Channel
Emphasizing the significance of its channel relationships, Simnet continues to focus on supporting MSPs, VARs, and resellers. “We frequently talk about what is important to the MSP, to the VAR, to the reseller, and how can we make things simpler while increasing profit and give them a first-mover competitive advantage,” de Vos explains, underscoring Simnet’s dedication to channel collaboration.
Simnet’s focus on providing white-glove service further differentiates it, delivering comprehensive support from architectural design to security management, which fosters client trust and satisfaction.
What’s Next for Simnet?
Looking ahead, Simnet’s innovative approach to infrastructure deployment—utilizing user-friendly, object-based interfaces akin to drawing applications—signals its commitment to enabling businesses to scale and innovate with ease. Major strategic priorities include expanding services to new markets and enhancing its capabilities in AI, GPU, and DevOps, ensuring Simnet remains at the forefront of cloud services innovation.
