As VARs are looking to make an even larger impact in the channel, many are choosing to unite with and acquire other solution provider businesses.
Venture Technologies has merged its IT and cloud solution provider business last Tuesday with Denver-based Information Systems Consulting (ICS) to focusing on building out its scalability.
Today, critical mass and scale are essential to long-term sustainability and survival in the channel, said Gerard Gibert, CEO of the Jackson, Miss.-based Venture Technologies.
"Going back to 2007-8, the industry was very fragmented [and] started to really be in need of consolidation," said Gibert.
"As time goes on, our [business] gets more diverse, and we dive deeper into enterprises as they look for extensive resources and critical mass, which generally allows us to improve the level of service we can deliver to our customers."
Solution providers will continue to join up with other solution providers, to form larger, palpable and practical organizations, said Gibert.
"The dynamics of the demands from the customer side and partner side are just overwhelming and requires you to really step it up," said Gibert. "Today a lot of folks are looking to join up so they can have access, maintain and manage [their businesses] successfully. We must continue to embrace change, adopt and invest or you're going to get left behind."
Together, Venture Technologies and ISC will bring a total of four data centers and combined revenue of $150 million. ISC also will bring its similar technologies including network infrastructure, cloud and virtualization, said Gibert.
"We built a good platform in Venture Technologies but the notion of expanding organically is risky and time-consuming [so] we explored and investigated across the country to grow the company," said Gibert. " Rather than trying to build out those capabilities, when you combine it becomes practical, doable and improves our line card and portfolio."
The transaction will be completed in May 2014 and in the long run, Venture Technologies anticipates operating with ISC under its single brand, said Gibert.
"They will be a phased-in approach since ISC has built a great brand in the market and we don't want to interfere with the brand and reputation," said Gibert. "Our long-term plan will definitely operate under the single brand of Venture Technologies."
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