Private Cloud Play: Evolve IP Acquires Paragrid, Expands To Midwest

Terms of the acquisition were not disclosed.

Evolve IP, Wayne, Pa., specializes in virtual desktops and servers as well as hosted call center and unified communications. The solution provider also offers its private cloud services to other solution providers that don't have their own data centers.

According to Guy Fardone, COO and general manager of Evolve IP, the Paragrid acquisition is part of a plan to boost the company's regional presence in the Midwest market.

"This is a big addition for us because it gives us a regional concentration as well as more data center capacity and more of the same kind of cloud services that we offer," Fardone said.

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With the addition of Paragrid's 20 employees and two data centers, Evolve IP now boasts five U.S. data centers and more than 100 employees.

Paragrid, founded in 2008, offers private cloud services and virtual servers as well as on-premise server deployments and managed services. Ryan Berg, president of Paragrid, said the acquisition gives his company the opportunity to expand its scope beyond Ohio, where most of the solution provider's clients are located.

Berg also said he's seen the demand for cloud services ramp up over the past six months. "Ohio traditionally may not have adopted cloud as fast as maybe some other states," he said. "But there's been a huge upswing in cloud services demand since this summer, and it's coming from all types of businesses."

Fardone also said he's seen an increase in interest in the cloud. "It's at the point now where if you're not in the cloud in some way," he said, "then you start getting questions from management."

With the addition of Paragrid, Fardone said Evolve IP will focus on expanding its reach through VARs, MSPs and systems integrators via its CloudNow partner program, which was launched earlier this year. The company currently has around 200 channel partners and has seen an increase in interest from solution providers looking for a private cloud partner.

"Last year we didn't have a lot of VAR and integrator partners, but that changed with CloudNow," Fardone said. "That's really taken off."

As for further regional expansion, Fardone said Evolve IP will look at additional acquisitions but the preference is to focus on internal expansion. "This is just our fourth acquisition. We're not going to rely on mergers and acquisitions to expand," he said. "We're going to grow predominantly through organic means."

PUBLISHED DEC. 5, 2013