expand into Japan. At the time we were still pretty young as a company, had to divert some key resources to make it happen, and depend on our partners’ support. It wasn’t an easy decision, but it paid off. Today, Japan is a fast growing part of our business and our experiences there have helped formulate the unique delivery model that we’ve infused throughout the company.
Today, I’m excited to announce that we’re now in Europe and, with the acquisition of Saaspoint today, are one step further in our quest to be THE pure-play global cloud integrator. Saaspoint is the largest and most experienced European-based provider of cloud consulting services and, while it’s our fourth acquisition this year, joining forces with them is a big milestone for Appirio. Here’s why:
- It gives us and our partners a proven team on the ground to address the rapidly growing European market. According to IDC, public IT cloud service revenue will reach nearly $73B by 2015, growing 27.6% overall, but more than 35% in Western Europe. It’s a tremendous opportunity for someone who has the expertise and resources to adequately serve this market, and it’s also a focus area for our three strategic partners - salesforce.com, Google and Workday.
- It provides us with instant scale for a rapidly growing business. Appirio has experienced near triple digit year-over-year growth in the last few years and we’re signing on a growing number of large, international customers. We’ve scaled our business in some unique ways - for example with CloudSpokes, a crowdsourcing cloud developer community we created earlier this year that now has nearly 30,000 developers in 65+ countries. However, the Saaspoint team enables us to quickly build up our core team to keep up with demand for local European and large, multi-national engagements. The team is already certified and experienced in numerous salesforce.com and Google solutions and we’re excited to apply their skills to building out our Workday practice as well.
- It enables us to fill a void in the cloud partner ecosystem. Today customers have had to choose between two extremes - the smaller pure play cloud service providers and the global systems integrators. Both can provide great service, but the size of the pure plays can raise questions about breadth and scalability, while the GSIs can lack the focus, agility and expertise that pure-plays can offer. We’re filling that void. Kind of like that middle bear in the Goldilocks and the Three Bears story - Appirio is “just right.”
Appirio and Saaspoint are a great fit in many ways. Saaspoint not only has a great reputation and reach in the region, they are well aligned with our vision, our partners and our culture. They have built a strong business with a significant growth trajectory, and have focused on hiring the best team. Having smart, enthusiastic, customer-driven people around you is pretty important when you’re talking about changing an industry - it doesn’t happen overnight.
So welcome to the Saaspoint team. We’re thrilled to have you part of the Appirio family and look forward to adding more to that family in the future!