Logicalis Names New CFO, Relocates To NYC To Bolster Global Reach


Global system integrator Logicalis last week named a new U.S. CFO and relocated its U.S. headquarters to New York in a move that aims to bolster the company's reach into the lucrative metropolitan market and help it build closer ties with its major technology partners.

Logicalis, a $1.4 billion integrator that was No. 28 on CRN's 2012 Solution Provider 500, appointed Nathan Fong as its new U.S. CFO, replacing Greg Baker, who left in September 2012 after six years with the company.

Fong's chief responsibilities for Logicalis include bridging strategy and operational day-to-day processes as well as providing executive direction and oversight of the company's U.S. finance, accounting, tax and strategic planning functions, according to the company.

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"I wanted someone that had a lot of strategic planning background and capability. I wanted somebody that can work as a partner with the business. I wanted somebody that had a profile of different business models that will ultimately extend our capability as our markets continue to move," said Vince DeLuca, CEO of Logicalis U.S., noting that the company has "very sound financial operations in place today."

"We really think our foundation is pretty solid," said Deluca. "We've gone through some changes in the last six months that got our organization and cost structure positioned appropriately."

Fong's diverse background -- which includes 20 years in financial positions in digital media, publishing and entertainment, as well as a more recent stint as CFO and COO of mobile Internet services company Motricity -- made him the "optimal candidate," DeLuca said. "His recent position was in a company that helped in the mobility space, which is key to where we are headed," he said.

The appointment of Fong marks the first major change to the company's senior management team since DeLuca became CEO in July.

"My main priority is to assist [DeLuca] in achieving our strategic objectives for 2014, which will include growing our core business and continuing our investment in cloud and [our] professional management services business," Fong said, adding that he does not see any budget or staff cuts for Logicalis in the immediate future.

Logicalis' strategic plan also includes the potential of "acquiring companies to advance us in a certain market or advance us in a particular technology space," Fong said.

The company is also investing heavily in technologies such as cloud, mobility and the consumerization of IT, Fong said, noting that he sees "potentially increasing competition from well-funded cloud competitors" as one of the challenges facing Logicalis.

Logicalis last week also moved its U.S. headquarters to New York from Farmington Hills, Mich. Twenty to 30 of the solution provider's 740 U.S. employees are located in the New York office, DeLuca said, stressing that no job functions will be moved out of Farmington Hills.

"NYC continues to be a growing area for technology. ... Our customers and markets are continuing to ask us, where appropriate, for global capability, and they want to visit us. Having customers and accessibility to the New York metro area from all over the world is an easier position," DeLuca said. "All our technology partners have significant presence here, [so] we're closer to the executive teams, field teams and inner workings of all of them," he added.

Logicalis is working to meet the challenges of changing customer needs and evolving business models, including market disruptors such as virtualization, cloud computing and software-defined data centers, DeLuca said.

"We have to be competent in a variety of consumption models for our varying customers in terms of flexibility, agility, pay for service and changes in cycles of their business." said Deluca.

DeLuca believes that Logicalis' remains successful in the channel because of its great emphasis on aligning the company's field sales team with those of its vendor partners, including Cisco, HP, IBM, VMware, EMC, NetApp and CA.

"I personally think our success is based on a lot of different things, but really the key to it is when our field teams are engaged. None of it works if the field teams aren't aligned," DeLuca said.

PUBLISHED APRIL 25, 2013

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