Mergers and Acquisitions, MSP, Private equity, Security Staff Acquisition & Development, Venture capital

SAP on AWS Cloud MSP Lemongrass Raises $10 Million


Lemongrass Consulting, a Top 200 Public Cloud MSP that deploys SAP cloud applications on Amazon Web Services (AWS), has raised $10 million Series C funding.

Blue Lagoon Capital led the investment round with participation from existing investor Columbia Capital, the company said.

Rodney Rogers, Co-founder and General Partner, Blue Lagoon Capital
Rodney Rogers, general partner, Blue Lagoon Capital
Walter Beek, Co-Founder & CIO, Lemongrass

Mike Rosenbloom

Take a closer look at Lemongrass, and you'll notice a lengthy list of Virtustream veterans now backing and/or working for the MSP -- including former Virtustream CEO Rodney Rogers, who becomes chairman of Lemongrass.

Rogers, co-founder and general partner, Blue Lagoon Capital, said:

“Lemongrass is an exceptional company. The magnitude of their vision and the quality of their solutions positions them well to dominate the SAP on AWS growth market. We could not be more delighted about this investment.”

Rogers knows the SAP cloud market well. His previous business, Virtustream, is a specialized cloud services provider that Dell Technologies now owns. Dell acquired the business as part of the EMC buyout. Ironically, Virtustream largely enjoyed first-mover advantage deploying SAP applications in the cloud. But now, Lemongrass is striving to write the next chapter in that SAP cloud journey -- with a heavy focus on the AWS ecosystem.

Lemongrass, founded in 2008, has now raised $29.3 million since the business launch. The MSP offers end-to-end client support as well as it own cloud management platform, MiCloud. The platform assists migrations and the ongoing management of SAP applications on AWS.

Lemongrass Executive Updates

Lemongrass also confirmed multiple executive updates. They include:

  • Accenture Intelligent Cloud & Infrastructure veteran Mike Rosenbloom joins Lemongrass as group CEO.
  • Walter Beek, previously Group CEO of Lemongrass, shifts to chief innovation officer to focus on the MiCloud platform.
  • Virtustream veteran Mike Provenzano joins as CFO.
  • Virtustream veteran Lisa Desmond joins as chief marketing officer.

In a prepared statement, Beek said:

"The most exciting days for Lemongrass are ahead. This is a remarkable team and I am honored to be a part of this journey. This latest funding and the strategic addition of these key leaders will drive exponential growth, enable strategic investments 'ahead of the curve', increase operational discipline, and inspire our team to be the absolute best as we execute on our commitments to our customers, partners, and investors."

Investments in cloud-focused MSPs and SAP partners remain strong. Track SAP partner merger, acquisition and investment activity here.

Additional insights from Joe Panettieri.