Avnet To Acquire Cloud, Automation Integrator Seamless Technologies

"They have a strong band brand in HP services and are considered a top partner as relates to cloud and automation for HP," said Tony Vottima, senior vice president and general manager of Avnet Services, the business unit into which Seamless Technologies will be integrated. "They are an excellent fit for Avnet's core service offerings, as we build out our capabilities around cloud. They will help drive implementation and resources around large-scale private clouds hybrids, and public clouds."

One key point of the acquisition involves Seamless Technologies' software that accelerates deployment of large-scale private cloud and IT infrastructure.

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"They have created a lot of their own custom IP that greatly decreases the amount of time needed for deployment," he said. "A lot of what they're doing is already scripted, which means that the process can move a lot more quickly."

"This brings a broad set of capabilities and services that [partners] can add to their portfolio without having to make big investments across the various areas of the services portfolio," Vottima added. "A lot of our partners are very hardware-centric and are trying to figure out new ways to add value. Having these types of capabilities and services available will create more value for them, which will drag more HP hardware and software."

While Vottima maintains that the acquisition will be popular with channel partners, others are unconvinced.

"I'm not surprised to see distributors get more involved in the cloud services market because I think they have concerns about being cut out of the party," said Phil Mogavero, vice president of advanced technologies at PCM, a Calabasas, Calif.-based integrator. "I think distributors are looking at their offerings as services, as much as products. If they can put their weight behind a solution offering that they can then market to the channel, they probably feel that this is their role. As a solution provider with our own cloud-based offerings, I have a different view of the world. We buy a lot of gear from Avnet and a lot of it is from HP. Theoretically, this could be complementary, but it might also be competitive to us."

Seamless Technologies, founded in 1992, claims revenue of approximately $14 million during the 2012 calendar year. The transaction is expected to close within 30 days, and the price of the acquisition is undisclosed.

PUBLISHED JUNE 10, 2013