F12.net Acquires Two Firms In Bid To Be Largest MSP For Canadian SMBs
Canadian MSP F12.net this week unveiled the latest in a string of acquisitions as part of its plan to become a nationwide provider of managed services to what it sees as an underserved small- and midsize-business market.
F12.net has acquired two small North York, Ontario-based MSPs as part of its geographical expansion, giving it a larger presence in the Toronto region, said Devon Gillard, director of client relations and managing partner of Edmonton, Alberta-based F12.net. The company currently serves customers from Vancouver to Toronto.
The two, Apps on Tap and Paradigm Network Solutions, have the same owner, but two different business models, Gillard told CRN.
Apps on Tap is focused on cloud enablement and helps customers move their businesses and their legacy applications to the cloud. Paradigm Network Solutions, on the other hand, provides IT services and support, he said.
While Paradigm Network Solutions helps F12.net with its goal of providing managed services to SMBs across Canada, Apps on Tap brings the company new capabilities, Gillard said.
"Its platform for helping customers move to the cloud in a compliant manner, and for moving legacy apps to the cloud, can be offered to clients across the entire F12.net market," he said.
Gillard declined to provide a dollar value on the acquisitions.
With the acquisitions of Apps on Tap and Paradigm Network Solutions, F12.net has made a total of nine acquisitions starting in 2006, Gillard said.
F12.net's business model is to become the largest MSP serving Canadian SMBs.
Canadian small businesses are, in general, only 73 percent as productive as their U.S. counterparts, which is down significantly from 90 percent in the 1980s, Gillard said citing recent statistics from the Business Development Bank of Canada.
"So we're slipping," he said. "So the situation for Canadian companies is getting worse. The issue is caused by Canadian companies' tendencies to underinvest in marketing, underinvest in R&D, and underinvest in technology and automation, compared to their U.S. peers. We can help with the last one."
Canada already has some great organizations providing managed services to enterprises, as well as some providing services to SMBs, Gillard said.
"But there's a big gap for SMBs," he said. "There are smaller providers of managed services. But the IT environment is getting complex, and that's taxing the smaller providers."