Mergers and Acquisitions, Mergers and Acquisitions, MSP, Content

Ingram Micro, CloudBlue Finally Confirm HarmonyPSA Acquisition


Ingram Micro's CloudBlue business has finally confirmed the HarmonyPSA acquisition, which ChannelE2E first reported in 2020.

This is technology M&A deal number 216 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

The CloudBlue-HarmonyPSA software combination offers some intriguing possibilities for MSPs. Specifically:

  • CloudBlue's software can manage software subscriptions, billing, channel, vendor and product information. The software essentially allows MSPs to modernize and manage their service catalogs -- including technology goods as well as SaaS, IaaS and XaaS capabilities.
  • By contrast, HarmonyPSA is a professional services automation (PSA) platform that unifies sales, operations and finance functions. HarmonyPSA combines CRM, ticketing, storefront, lead generation, assisted sales, and vendor competency and incentive programs into a single solution as a quote to cash and accounting system, the company says.

Roll CloudBlue, HarmonyPSA and the Ingram Micro Cloud together, and MSPs potentially gain an end-to-end digital supply chain to support their customers in a more automated way, ChannelE2E believes.

Starting now, HarmonyPSA is available on the UK Ingram Micro Cloud Marketplace, CloudBlue says. The company did not say if or when the PSA software will surface in the Ingram Micro Cloud Marketplace within the United States and elsewhere.

Ingram Micro, Cloud Blue and HarmonyPSA: Key Rivals

Nimesh Dave, president, Ingram Micro Cloud and CloudBlue

Take a closer look, and the CloudBlue-HarmonyPSA combination blurs or eliminates the lines between PSA, quote to cash, and cloud marketplace systems. The Ingram strategy appears to compete, at least in some ways, with the newly launched Datto Commerce, the ConnectWise Marketplace, and Pax8, ChannelE2E believes.

In a prepared statement about the Harmony PSA acquisition, Nimesh Davé, president of CloudBlue and Ingram Micro Cloud, said:

“The acquisition of Harmony is a direct response to our MSP partners’ requests to help them quickly transform and grow a cloud services business with less risk. We are delighted to have the Harmony team join our CloudBlue community as we expand our technology offerings.”

Added Steve Powell, co-founder and CTO of Harmony Business Systems:

“We’re extremely excited to join the CloudBlue family to capitalize on our shared commitment of driving growth for our customers. By working together, we will dramatically scale our customer base and expand our offering across various marketplaces.”

PSA Software Market: Growing, Consolidating and Evolving

The PSA software market will reach about $14.39 billion by 2022, up from $6.26 billion in 2014, according to Grand View Research.

Within the MSP and IT services provider markets, ConnectWise Manage and Datto’s Autotask are widely considered the North American market share leaders, with platforms like Kaseya BMSAteraSyncro, Harmony PSA, Tigerpaw Software and dozens more carving out their own niches. Also of note: Sherweb quietly acquired an ITSM platform in 2020.

In the midmarket and enterprise, meanwhile, companies such as Oracle NetSuite and WorkDay also offer PSA software platforms.

On the M&A front, Accel-KKR in March 2021 acquired Kimble Applications, a provider of cloud-based PSA  software that runs on the Salesforce platform.

PSA Software and Salesforce CRM Cloud Converge

The Salesforce ISV ecosystem is particularly active with emerging and established PSA providers, mostly because of Salesforce’s massive installed base and application marketplace, as well as the natural link between CRM and PSA services.

In addition to Kimble Applications, key PSA providers in the Salesforce market include FinancialForce (extending into cloud ERP) and Klient (formerly Krow Software).

Among the major moves to watch: Tanium and Salesforce have unveiled IT Service Center, a combination platform that supports ITSM (IT service management), RMM (remote monitoring and management) and cybersecurity capabilities.

Back in the SMB-MSP channel, we'll be watching Ingram for more potential moves.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.