Virtualization Technology News and Information
Q&A: Interview with SingleHop, Talking Server Intellect Acquisition

SingleHop, a private cloud and managed hosting provider based in Chicago, recently announced the acquisition of Server Intellect, an Orlando-based hosting provider specializing in Microsoft environments. To find out more about the announcement, and why SingleHop acquired Server Intellect, I spoke with the company's President & CEO, Zak Boca.

VMblog:  Tell us about the acquisition news that you've announced.  Why acquire Server Intellect?

Zak Boca: SingleHop already has a strong position in the private cloud arena realized through our VMware-based solutions. While half of today's enterprises are standardized on VMware's hypervisor, Microsoft's Hyper-V climbed to a 30% share of the market by the end of last year. Our acquisition was driven to build expertise in that technology to better support our customers. Server Intellect was the perfect fit because, as a top-to-bottom Microsoft shop, they have deep expertise in Microsoft's platform, and they share our commitment to offering the flexibility that customers need.

VMblog:  OK, can you take us back a bit?  Did you work with Server Intellect prior to making this decision?  And if so, what was that experience like?

Boca: While we didn't work with Server Intellect directly prior to the acquisition we've been following them for quite some time. Not only had their team established a reputation as Microsoft experts they also exhibited the strong, customer-centric approach that we were looking for.

VMblog:  Given that Server Intellect was a top-to-bottom Microsoft shop, do you see Azure and Hyper-V as continuing to gain market share?  And what will that mean for hosting providers like SingleHop?

Boca: SingleHop likes seeing the growth of public cloud, because our experience shows it to be a proven catalyst for private cloud growth. While SingleHop provides both type of cloud solutions, our main focus in is private cloud. This is because mid to large enterprises often hit a point in their public cloud deployments where it becomes more economical to move to a private cloud solution that is inherently stronger in privacy, security, and compliance capabilities. Private cloud deployments eliminate much of the complications associated with noisy neighbors on shared infrastructure or down time that can affect the whole public cloud. Advancements in automation have helped drive greater parity between public and private cloud in terms of scalability and cost efficiency while also providing the benefits of isolation. 

With regard to the growth within the hypervisor market, Hyper-V is certainly very popular and our acquisition of Server Intellect addresses the strong demand for the hypervisor from customers. Now with support across both VMware and Hyper-V, SingleHop is able to deliver cloud solutions powered by the two leading hypervisors utilized by 80% of today's enterprises.

VMblog:  Going forward, what will this acquisition mean for existing customers of both SingleHop and Server Intellect?

Boca: Both sets of customers are going to gain. SingleHop customers now have access to the deep Microsoft expertise of the Server Intellect team and Server Intellect customers have access to the deep VMware expertise of the SingleHop team. All Server Intellect solutions now run on SingleHop's powerful automation and orchestration platform, giving customers the benefit of faster time-to-market, reduced error and decreased risk, as well as SingleHop's leading SLA and Customer Bill of Rights. Server Intellect's technical expertise was a driving factor in the acquisition and we've not only retained all of the day-to-day business operations staff  but are looking to expand to build on the strength of the relationships that SingleHop and Server Intellect have developed with our customers.

VMblog:  This acquisition comes on the heels of another significant investment in December, i.e. the opening of your Chicago data center.  How does Server Intellect fit into SingleHop's overall strategy and what might your next big investment look like?

Boca: We already had strong revenues prior to taking outside money, so we had the luxury of spending the capital we raised on new investments, rather than just business operations. Our investments -- from building a $30M tier IV state-of-the-art datacenter in our hometown of Chicago to acquiring Server Intellect -- are all focused on advancing the market for private cloud and our position in it. While we're not disclosing what our next investment will be at this time, suffice to say that we are on the look out to expand our capabilities and geographies to support our private cloud leadership goals. Once we make a decision you can be sure that we'll come back to talk to you about it Dave!


Once again, thanks to Zak Boca of SingleHop for taking time out to speak with VMblog and discuss their latest acquisition news with us.
Published Wednesday, March 11, 2015 7:02 AM by David Marshall
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