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Q&A: Interview with SingleHop CEO on Datagram Acquisition

SingleHop, a private cloud and managed hosting provider, recently announced the acquisition of New York-based infrastructure solutions provider Datagram. To find out more about the deal, and why the company acquired Datagram, I spoke with SingleHop President & CEO, Zak Boca.

VMblog:  Tell us about the acquisition of Datagram.  Why was the company a strategic target?

Zak Boca:  Datagram is an established leader in a growing market, and they share our vision of providing customers with agile, efficient private cloud solutions. We talk to organizations every day that are looking toward the cloud to provide them with the flexibility and agility that they need from IT. They want efficiency in managing their infrastructure and the acquisition of Datagram allows us to offer colocation in addition to the extensive private cloud offerings SingleHop has long been a leader in.

In addition, the acquisition of Datagram allows SingleHop to add data centers in New York and Connecticut that will help us meet customer demand in the Northeast region. Datagram counts companies like Birchbox, RadicalMedia and Gawker Media among its customers, and we're excited to see that list grow.

VMblog:  Why do you see this as an area for growth?

Boca:  Recent research from HP and Mashable demonstrates that 82 percent of enterprises have a multi-cloud strategy (up from 9 percent in 2014), of those 55 percent use hybrid cloud. Hybrid is popular because many organizations want to move workloads to the cloud, but are hesitant to do so because they've already made significant internal infrastructure investments. What SingleHop and Datagram are doing is offering organizations the chance to begin migrating some of their workloads while fully levering their existing investments in servers and other datacenter equipment. 

Customers also have the option to migrate over time to a fully hosted or managed cloud solution that leverages the deep expertise of our staff and the latest in technology. We remove the onus from customers of having to take on all that it requires to stay ahead of advancements in cloud infrastructure and capabilities to let them focus on their core business and day-to-day IT functions.

VMblog:  OK, and what does the acquisition mean for existing customers of both companies?

Boca:  Customers of both companies should be excited by this news. Datagram will continue to operate as an independent business unit of SingleHop and we will immediately be able to deploy their services across all of SingleHop's locations. In addition, Datagram customers will benefit from an improved suite of services and benefits including SingleHop's industry-leading SLA, access to our customer portal and automation engine and an expanded team of private cloud experts to help manage their resources.

VMblog:  You say Datagram will operate as an independent business unit of SingleHop.  What exactly does that mean?

Boca:  Datagram's office operations, sales, support, marketing and other business aspects will remain intact, but will be expanded as we continue to invest in Datagram's services and growth. Ultimately it will mean that SingleHop is in the best possible position to build off Datagram's excellent customer base and work towards becoming the managed hosting provider of choice in the Northeast region.

VMblog:  This is SingleHop's second acquisition this year.  Are you continuing this push of growing through purchasing strategic partners through 2015?

Boca:  We've had a very exciting few months and we are always looking for opportunities to expand our services and capabilities in order to support the growing business needs of our customers.

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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 Thursday, May 21, 2015 6:34 AM by David Marshall
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