RapidScale Acquires Vonage's Infrastructure Business

Earlier this week, RapidScale announced that it has a deal in place to acquire the infrastructure services business previously held by Vonage. As a part of the deal, RapidScale will gain full control of a portfolio of products that includes Infrastructure as a Service, Hosted Exchange, Virtual Desktop, IT Services, Hosted Firewall, Backup Service and Microsoft Skype for Business services. The deal dramatically expands the amount of business offerings that RapidScale will be able to provide and increases its presence as a player in the IT services landscape.

Another key aspect of the deal is the fact that it allows RapidScale to expand its footprint to both coasts. In the past, RapidScale was a regional technology company that was mainly focused on the West Coast. However, with the acquisition of this division of Vonage, it will gain a presence on the East Coast as well. The company will open an office in Tyson, Virginia, and will be able to add more of an East Coast focus to its product offerings.

“IT teams of all sizes today are looking for a partnership focused on best-in-class managed cloud services, delivered on a global cloud platform, with managed and hybrid support,” said Randy Jeter, the CEO of RapidScale. “Additionally, I see an increasing need for advanced self-service capabilities, reporting, compliance, security and automation, which all help streamline IT. I am excited to address these growing needs for the customers we are acquiring and to provide them with a great cloud experience.”

The old saying has always been, “If you can’t beat ‘em, join ‘em.” In the tech world, it certainly holds true.  Often, in fact, expanding through acquisition may prove a more efficient and lucrative alternative to purely organic growth.  That’s clearly what RapidScale sees in its deal with Vonage. Acquiring the infrastructure business from Vonage is a smart strategic move, allowing RapidScale to quickly gain a suite of products that it was not able to offer previously, while also expanding its geographic footprint and customer base.

Edited by Alicia Young