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Hardly a week goes by when there is no an example of further channel consolidation as channel businesses take steps to ensure they have the skills, market coverage and solutions to reach a wider customer base.Content Continues Below
The move by Roc technologies to pick up Esteem Systems is the latest deal to be added to the list that has grown throughout the last couple of months.
The tie-up creates a £80m services provider that should give the combined entity an opportunity to pitch for more digital transformation business.
“Our strategy at Roc is simple; to become the most valuable partner in our customers digital transformation strategy, and through that value-driven customer relationship, drive Roc’s growth and reputation in the market," said Matt Franklin, CEO of Roc Technologies.
"Esteem brings recognised strength in Private and Public Cloud solutions and services and a strong Managed Services portfolio. Together we can serve the Intelligent Infrastructure and Cloud needs of our customers. Esteem has also built a significant Managed Services business, which when added to Roc’s Managed Services capabilities creates an incredibly strong annuity driven business," he added.
The firms also have a lot of knowledge of complementary vendors, including Citrix, Dell/EMC, HPE Aruba, Microsoft, Nutanix, Oracle, Tibco, UK Cloud and Cisco.
The channel can expect more of the same with Steve Brazier, president and CEO of Canalys, using his keynote slots at the analyst house's Channels Forum event to forecast increasing consolidation.
"We are seeing acquisitions of the born in the Cloud re-sellers. It's got a lot of hype, the born in the Cloud topic. It is of course nonsense as a business model, so some people have set up born in the cloud companies and they have done well and are growing. The end-game clearly, they have to be acquired," he said.
"In a hybrid world, if you can only do the public cloud stuff, you are not very relevant to many customers. We are expecting to see more and more of those acquired over the next 12 months by many of you, you get the skills, they then get the ability to serve a complete customer solution rather than a niche solution," he added.
Brazier also made a prediction that US player CDW would follow up on its successful acquisition in the UK of Kelway by looking to do the same on the continent.
"CDW will buy a top ten European partner within two years. The acquisition has gone well," he said.