Coming Together in the Cloud: Day1 Acquires Logic Method IT

Day1 Solutions has acquired cloud managed services provider Logic Method IT (LMIT), bolstering its private-label offerings and Amazon Web Services portfolio.

McLean, Va.-based Day1 said bringing LMIT on board should bolster the solution provider's existing cloud support team and broaden the portfolio of services available to all customers.

"This is really the year to get moving on managed services in the public cloud," LMIT CEO Mike Bradicich said in an interview with CRN. "I was not going to be able to scale myself without the resources of Day1 behind me."

[Related: The Future Is Now: Hybrid Data Centers Go Mainstream]

Bradicich said enterprise customers -- which make up the bulk of each firm's clientele -- are at last ready to rethink the data center and move a significant portion of their IT infrastructure into the public cloud.

Day1 CEO Luis Benavides will lead the joint company, while Bradicich, of Reston, Va.-based LMIT, will become Day1's vice president of cloud managed services, leading the managed services solutions portfolio and delivery teams. Bradicich has nearly two decades of experience in the technology sector.

Financial details of the transaction, which closed Oct. 20 and was announced Thursday, are not being disclosed. LMIT will move into Day1's offices as part of the deal.

"This deal supports our strategy to meet and exceed customer demand for cloud expertise and solutions through organic growth and targeted acquisitions across key market segments," Benavides said in a statement. "Private-label cloud solutions, together with our comprehensive managed services portfolio, strengthen our market position."

Bradicich told CRN that not much overlap exists between the strengths of each company. Day1 specializes in cloud professional services, integration and migration, he said, while LMIT handles the 24 hours-a-day, 7 days-a-week monitoring and management component.

Following the closing of the LMIT deal, Day1 has 50 employees. Benavides told CRN he expects the headcount for Day1 -- which was founded in 2012 -- to double over the next year through organic growth and acquisitions.

Day 1 hopes to boost its proficiency in big data and dealing with sensitive government security matters through M&A around the start of 2015, Benavides said. The solution provider is closing out its first round of funding, Benavides said, and is about to announce the start of a second funding round.

Day1 has enjoyed 100 percent year-over-year growth, Benavides said. He expects that figure to hit 300 percent heading into 2015.

The solution provider expects its public cloud offerings to find the greatest traction in the government, education and healthcare verticals, Benavides said.

Day1's private-label service offers top-of-the-line support all under the customers' brand, including services such as a dedicated phone line staffed around the clock and a "support" email address with the end user's business serving as the domain name.

LMIT supports cloud infrastructure for AWS partners behind the scenes, helping them find ways to lower costs and create ongoing revenue streams, according to the statement. AWS partners working with LMIT include start-ups, high-growth companies and resellers.

Not only does AWS have the bulk of the public cloud infrastructure business, Bradicich told CRN, but it has also demonstrated a commitment to not compete against the channel with a direct sales team.

Day1 helps firms design, deploy and manage cloud infrastructure, services and solutions in the commercial, government and higher education verticals.

PUBLISHED NOV. 13, 2014