This is M&A deal number 235 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
Netreo of Irvine, California, develops IT infrastructure management and monitoring software. The company had $4.5 million in revenue for 2018, according to the Inc. 5000 list for 2019.
Related: Top 200 Public Cloud MSPs
Netreo Acquires CloudMonix: Azure Monitoring Details for MSPs
Paraleap Technologies of Chicago, Illinois, launched CloudMonix in 2015. Fast forward to present day, and CloudMonix has grown into a Microsoft Silver partner. The cloud monitoring software also supports Amazon Web Services (AWS), but Netreo seems to be emphasizing the acquired company's Azure monitoring capabilities.
CloudMonix's Azure monitoring service offers "advanced insight into system performance, auto-scaling of resources, automation of issue resolution and self-healing to ensure uninterrupted service," the buyer says.
CloudMonix integrates with such IT service management (ITSM) and collaboration platforms as Microsoft Teams, Jira, LogEntries, Slack, ServiceNow, Twilio, PagerDuty, ManageEngine, Freshdesk and Zendesk, the company says.
Netreo Acquires CloudMonix: Executive Perspectives
In a prepared statement about the deal, Netreo CEO Jasmin Young said:
“Netreo is delighted to welcome CloudMonix to the family. The addition of CloudMonix’s capabilities to Netreo’s platform strengthens our efforts to provide high quality cloud infrastructure monitoring to DevOps teams, Managed Service Providers (MSPs) and Cloud Service Providers (CSPs).
We’re also looking forward to deepening our partnership with Microsoft to empower our customers to manage and monitor their mission-critical infrastructure, applications and devices both on-premises and in the cloud and across cloud, on-premises and hybrid deployment models."
Mergers and Acquisitions: Cloud Monitoring Tools
Netreo is moving into a fast-growth market. Indeed, MSPs and CSPs crave public cloud monitoring tools that assist software migrations and ongoing IT management needs.
Still, the market is flooded with competition. M&A activity involving cloud monitoring tools has been steady to strong over the past few years. Plus, cloud and software giants like Microsoft and Google have developed multi-cloud monitoring tools to give enterprise IT professionals and MSPs a single, integrated view of cloud workloads.
Amid all those developments, only a few software companies -- including upstarts like Nerdio -- have successfully helped MSPs to monetize Azure cloud services.