Entisys Solutions is making big moves in the Hewlett-Packard partner space with its acquisition of Premier IT Solutions, an IT service firm that will add new expertise and scalability to the Entisys portfolio.
Terms of the deal were not disclosed.
While Concord, Calif.-based Entisys sells almost all of the HP portfolio, CEO Mike Strohl said Premier IT Solutions, an eight- to 10-employee company based in Sacramento, Calif., adds specialty expertise in HP Application Lifecycle Management (ALM) that Entisys didn't offer before.
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HP ALM requires unique expertise to sell, including both software and software development. Premier IT Solutions has that expertise, Strohl said, with an entire framework built around enterprise data center automation software and software development.
Premier IT Solutions also offers key capabilities in terms of software quality assurance, testing automation and performance monitoring.
"When you look at where our business has come to in terms of enterprise data centers and our relationship with HP, for us to continue to scale our service organization ...This skill set is critical to that," Strohl said. "It really gives us a big strategic advantage that is unique to customers in this space," he continued.
While the deal originally started as a tight partnership, Strohl said there was "more opportunity for success" with an acquisition. On top of the technical expertise, Strohl said Premier IT Solutions adds a strong customer base, with major corporations and state agency contracts, as well as geographic reach and scalability.
"If we do it right, it will absolutely help us set it apart," Strohl said.
As Entisys builds on its partnership with HP, Strohl said he has seen incredible growth, adding up to 30 percent to 40 percent annually. Strohl said the Premier IT Solutions acquisition shows Entisys' commitment to the vendor and is a way to give back after all HP has done for the company. While Entisys could have invested in a company that focuses on EMC, Cisco or another of its partners, Strohl said he chose to invest in HP.
"We are continuing to make our investments in HP," Strohl said.
With both current and new customers, Strohl said that the acquisition will open up lots of doors for the solution provider. Premier IT Solutions' expertise in software development for enterprise data center automation elevates the sales conversation to the C-suite, he said, and gives access to new client relationships.
"It's just going to be a net-positive for us from all perspectives," Strohl said. "This will open up many kinds of new doors."
PUBLISHED DEC. 31, 2014