Boston, MA 03/25/2014 (wallstreetpr) – InterCloud Systems Inc (NASDAQ:ICLD) is a provider of specialty solutions in wireline and wireless communications. The company announced that it acquired VaultLogix which is a provider of cloud backup services. That announcement in itself was enough to send shares of InterCloud soaring. And all that happened on good reasons.
The company whose shares jumped almost 15 percent in the past session said that teaming up with VaultLogix will boost its sales efforts and broaden its product and service portfolio. The company observed that the extensive customer network of VaultLogix and its product and service portfolio as well as the reputation in bears in cloud services sectors are great assets to bring to InterCloud.
The management of VaultLogix also echoed their excitement with the deal to join forces with InterCloud. VaultLogix CEO Tim Hannibal observed that they hope to expand their sales by adding more clients from InterCloud Systems Inc (NASDAQ:ICLD). Also, he said they will cross-sell InterCloud products to their customers, thus expanding sales on both sides.
The collaboration deal between the two companies is expected to close in the next 60 days. But there is more to the deal and here is the gist of the matter.
Shifting market landscape
While VaultLogix and InterCloud Systems Inc (NASDAQ:ICLD) may be joining forces to benefit from each other’s business network, increase efficiency and reduce cost of business, the market environment could be compelling such deals to be made. According Mr. Hannibal, managed cloud services is fast-evolving and more customers are interested in getting multiple services from a single vendor. In this situation, cloud services companies are finding it necessary to team up, bring together capabilities and take advantage of the market that is demanding all-under-one-roof.
More of these to come
If the observation by Mr. Hannibal is to be believed, there is no doubt more similar deals as the one between VaultLogix and InterCloud Systems Inc (NASDAQ:ICLD) will be seen happening among cloud services companies seeking to realign with market needs.
