We getting used to acquisitions of SaaS providers and between SaaS providers but now the M&A movement is filtering down to the partner network. It’s a welcome sign because it will provide impetus around the development of broader offerings, in place of what are generally single or dual function applications (eg CRM, HCM). It is also significant because it could presage inter-cloud integration (maybe even acquisition).
Google partner Cloud Sherpas is merging with Salesforce.com partner GlobalOne. Cloud Sherpas describes itself as the first Google enterprise support partner and its business is based around Google Apps collaboration applications. GlobalOne provides Salesforce.com customers with services and software to integrate, install and configure the cloud offerings with customers’ on premise ERP and CRM applications. The new entity will operate under the Cloud Sherpas name, and will take $20m of funding from Columbia Capital.
Although we don’t think either company has significant UK interests, it is an important development within the cloud market. The merger provides each partner with new growth opportunities – clearly they have no intention of remaining in their respective niches. It is also an early move to challenge the likes of Microsoft, SAP and Oracle around business collaboration and broader productivity and business applications. M&A’s tend to come in batches, this may be the first of a series.