Presidio CEO On AWS, Cisco, M&A And Biggest IT Bets
Bob Cagnazzi, CEO of $5.4 billion Presidio, explains his investments and strategy this year with AWS, Cisco, M&A and what’s driving the most sales growth in 2023.
Presidio CEO Bob Cagnazzi has huge growth plans in store for his $5.4 billion solution provider superstar in 2023 and beyond, backed by a large backlog thanks to its innovative services strategy and tight partnerships with the likes of Amazon Web Services and Cisco.
While many tech companies are laying off employees, New York City-based Presidio is continuing to add to its 3,400-employee headcount and will likely look at acquisitions this year thanks to sales growth via large-scale projects, “true recurring revenue,” and transforming itself into more of a service provider.
“We’ve got a backlog that is literally eight-times larger than it would have been, say in 2019, for the size of our business today,” said Cagnazzi, whose been CEO of Presidio for over a decade.
“We do 11,000 projects a year with our average revenue, per client, is probably close to a million dollars because we’re doing these large-scale projects,” he said. However, Presidio is shifting award from a project relationship with customers into more of a service provider relationship.
“Revenue per client for people that are under those [Presidio service provider] contracts, is probably about 30 percent higher than clients who are not under one of those contracts,” he said. “So our ability to sell across our portfolio and to penetrate deeper within the client group to gain greater wallet share, is enhanced by moving to more of the service provider relationship.”
AWS And Cisco
Presidio is one of Cisco’s largest channel partners in the world.
“Cisco’s made some enhancements to their sales organization to really understand how to drive partner managed services along with their product set in their solutions—that’s been really helpful,” said Cagnazzi.
One of Presidio’s largest bets in its history is being place on the global cloud market share leader AWS. Last year, Presidio signed a historic multi-year strategic collaboration agreement with AWS to drive cloud consumption and create innovative new services and solutions. Cagnazzi is bullish on AWS and its channel strategy.
“Amazon is going through that shift that somebody like a Cisco went through when Cisco started going heavily into channel. AWS is really understanding the power of a good channel partner,” said Cagnazzi. “And that’s filtering out to the field.”