Cloud cost management and efficiency platform provider, Cloudability, has acquired Brisbane-based Australian Amazon Web Services (AWS) partner, Cloud Manager (CloudMGR), in a bid to tap the burgeoning cloud market in Australia and New Zealand.
Cloudability, headquartered in Portland, Oregon, in the United States, specialises in tools aimed at helping companies manage cloud spending across departments, products and infrastructure. Its offering is designed for businesses running on public cloud services like AWS and Microsoft Azure.
The new deal sees Craig Deveson, founder and Chief Executive Officer (CEO) of CloudMGR, an AWS Advanced Technology partner, join Cloudability as its new General Manager for Australia and New Zealand, where he will head up the local operation.
According to Deveson, the acquisition will see the CloudMGR branding fall by the wayside, with the business set to come under the broader Cloudability banner, and the company’s footprint in San Francisco, where it has a second office, to be absorbed into Cloudability’s US sales team.
“We’re trying to add the expertise of CloudMGR and its customers into larger the Cloudability offering, and make that a better experience for our customers around one brand,” Deveson told ARN.
“The strategy moving forward is to go with a single brand. That will be happening over the next couple of months, which is a fairly typical scenario to focus around a predominant brand,” he said.
Since launching its integrated cloud services management solution in Amazon’s AWS Marketplace in 2013, CloudMGR has made a name for itself locally and further afield thanks to its platform for optimising, managing and integrating AWS cloud resources.
CloudMGR is an AWS SaaS partner, AWS Test Drive partner and AWS Recommended Technology partner for MSP's, as well as being an AWS Advanced Technology partner.
Cloudability’s move to acquire CloudMGR comes as part of a broader push by the United States-headquartered cloud cost management company to bulk up its standing in the local market as cloud adoption in Australia and New Zealand surges.
"It's been encouraging to see this region grow over the past few years," said Cloudabilty CEO, Mat Ellis. "Joining forces with CloudMGR allows us to better serve both our existing customer base as well as the ever-growing number of companies adopting the cloud in Australia and New Zealand."
According to Ellis, some of CloudMGR's features could re-emerge in future Cloudability releases following the integration of the two companies.
"We are big believers in automation,” Ellis said. “We will incorporate their expertise in this area to improve upon our solutions relating to data-driven automation."
The deal marks Cloudability's fifth acquisition, and its first in the local region, following purchases of the likes of data visualisation company, DataHero, in 2016, data transfer startup, RipFrog, cloud management platform, Attribo, in 2015, and others.
The move to acquire a local player comes at least four years after Cloudability first started working with companies in Australia and New Zealand.
Following continued interest and growth, Cloudability has grown its local presence over the past few years to include Sydney, Melbourne and Brisbane, and counts Atlassian and Tabcorp among its local clients.
While the dollar value of the deal has not been disclosed, Deveson said that it is typical of an equity-based deal, where shares between companies are transacted.
The acquisition represents the second such exit for Deveson, whose company, Devnet, was bought by cloud advisory and technology services company, Cloud Sherpas, in 2011. Cloud Sherpas was subsequently acquired by Accenture in 2015.
“Our acquisition of Devnet, an early Google partner, ensures that our local team will be well-equipped to serve the increasing demand from both enterprises and local businesses looking for an experienced Google Apps partner in the region,” Cloud Sherpas CEO, Jon Hallett, said in a statement at the time.