This is technology M&A deal number 645 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
CloudCover Acquires Palotac
CloudCover, founded in 2006, is based in Irvine, California. The company has 38 employees listed on LinkedIn, and CloudCover said it has doubled its headcount over the last two years. CloudCover sells exclusively to the channel and the company’s areas of expertise include hybrid maintenance management, asset management, maintenance portal, contract management, alternative maintenance, renewal management, third party maintenance, budget management, vendor management, contract consolidation, vendor consolidation, managed services, enterprise technology, IT services, warranty management, networking, servers, storage, SaaS, channel and data science.
CloudCover's offerings include a global hybrid maintenance service delivery via an intelligent maintenance management platform that includes a custom-built artificial intelligence-as-a-service (AIaaS). CloudCover’s platform allows channel partners to convert customer maintenance relationships into their own managed service and generate recurring revenue.
Palotac is based in Truckee, California. The company has approximately 1,200 engineers and serves customers in 130 countries for hardware replacement and expert TAC support globally, according to the company.
CloudCover Acquires Palotac: Executive Insight
Jeff Huggins, CloudCover CEO and president, said of the acquisition:
“Our job is to anticipate our customers’ needs. For the last few years that has meant building up our services, sales, and marketing headcount. At the same time our AI has been growing more intelligent and responsive, providing acceleration in our service capabilities. Many providers are offering some sort of management platform, but none are able to do it holistically and at the level our data science and services team is already executing. No matter where your maintenance info lives – OEM, TPM, CloudCover or some combination of all three – CloudCover easily integrates and manages it all accurately. This management is the next evolution in maintenance service delivery. It puts customers who work on our platform in a role of advisor for their end-users. This is the big differentiator and the next evolution of IT maintenance.”
Dimo Hristov, Palotac's chief technology officer, commented:
“Palotac already understood the importance of quickly connecting customers directly to experts in the networking space. This acquisition will expand that experience for our existing customers adding storage, server, and professional service delivery with the benefit of the CloudCover platform’s support and visibility. Palotac’s extensive experience in providing TAC support will perfectly combine with CloudCover’s proprietary platform and AI services to fill every support need. We’re very excited to be joining the CloudCover team.”