Perth-based technology company, Diverse IT, is set to acquire the people, intellectual property and assets of privately held Cloud services provider, Red Ember Solutions, for an undisclosed sum.
Diverse is a Perth-based managed services provider (MSP) across networking, security, infrastructure, disaster recovery, Cloud, mobility, satellite, and wireless. It was founded in 2000, with a customer base spanning businesses and government agencies.
The purchase stems from long-term relations between Diverse managing director, David Cameron – who was appointed in April – and the Red Ember leadership team.
The acquisition brings Red Ember's specialist skills and assets in Cloud and hosted solutions, complimenting Diverse IT's existing information and communications technology offering.
The combined capabilities immediately expand Diverse IT's capacity to satisfy growing demand for Cloud-based solutions.
Diverse IT managing director, David Cameron, said it was a strategic investment for Diverse IT in order to expand our existing Cloud capabilities.
“We can now compete with some of the big boys in the Cloud space,” Cameron told ARN. “It gives us competitive edge against Amazon Web Services (AWS), ASG Group, and Amcom.”
Diverse IT intends to retain all Red Ember employees after the acquisition, according to a company statement.
From Red Ember’s perspective, it was about joining a bigger entity in order to help drive Cloud adoption in the commercial mid-market.
The CSP's chief technology officer, Luke Notley, said his company's clients would continue to receive the same high quality solutions and service that they have come to expect.
According to the IDC Enterprise Cloud Survey, Australia's adoption of Cloud services is steadily increasing, with 86 per cent of enterprises using Cloud services.
IDC estimates the total Cloud services market will grow from $884.4 million in 2012 to $2.7 billion in 2017, at a compound annual growth rate of 24.7 per cent.