Riverside Partners Acquires Calero: TEM in Transition

Calero Logo
Calero

On September 13th, 2017, Riverside Partners, a Boston-based private equity firm, announced the acquisition of Calero Software from Clearlake Capital. Calero manages more than $6 billion of annual telecom, mobility, and cloud spend for more than 3,000 customers in 40+ countries and provides managed mobility services for more than 400,000 devices, making it one of the largest technology expense management solutions overall behind Tangoe’s $38 billion+ in technology expense management and Flexera’s $13 billion+ in software expense management. (Cass does not break out its telecom spend, but Amalgam believes it to be similar in scale to Calero.)

This blog covers Amalgam’s perspective on:

  1. Why Clearlake sold Calero?
  2. Who is Riverside Partners, a relatively new player in the TEM space?
  3. What to expect from Calero going forward?
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Amalgam Insights Publishes SmartList on 8 Hidden Gems in Telecom Expense Management

Table listing 8 Hidden Gems of TEM: Asignet, Ezwim, GSG, ICOMM, MobiChord, NetPlus, Smartbill, vCom
Snapshot for AI's 8 Hidden Gems for Telecom Expense Management
SL0917A-AI Vendor SmartList – snapshot

Over the past decade, Telecom Expense Management has evolved substantially from its roots of telecom and network spend to a more holistic combination that also includes mobility, end user computing, Software as a Service, and Infrastructure as a Service. Because of this expansion of spend, TEM has evolved from Telecom Expense to Technology Expense Management which can be used to manage the majority of enterprise IT.

Amalgam finds that there are a number of high-quality TEM solutions that are hiding under the radar of enterprise buyers despite being market leaders. As an example, in May of 2017 Gartner put together a Market Guide of Telecom Expense vendors including vendors handling multiple billions of dollars in technology spend such as Calero, Cass Information Systems, Cimpl, Dimension Data, MDSL, Tangoe, and WidePoint as well as strong competitors Comview, Mobile Solutions, Network Control, Saaswedo, TNX, and VoicePlus. Although these Gartner-named vendors all provide TEM solutions that are appropriate for various market sectors and needs, Amalgam believes that a number of strong competitors were left out both in the multi-billion dollar management and the strong competitor categories that should be considered in competitive vendor selection environments.

To provide additional insight and to ensure that representative global vendors such as the largest standalone Australian TEM vendor and the largest standalone European TEM vendor were covered, Amalgam is proud to present 8 Hidden Gems for Telecom Expense Management available at no cost for the first 100 downloaders.

IT Asset Management Must Change to Cut SaaS Costs by 30%

Money Bubbles in the Clouds
You Must Change Your LIfe ~ Ranier Maria Rilke
You Must Change Your Life

A generation of IT has been trained on the practice of Software Asset Management, which has been built on the focus of audit-based license agreement compliance. As the enterprise software market has moved to SaaS, the need for regular audits has decreased because of a fundamental shift from vendor-driven contract enforcement to client-friendly policies for adding new licenses and services.

As software shifts from being a license-based capital expenditure asset to a usage-defined operational expenditure service, the foundational nature of software management must change as well. Rather than managing software as a sunk cost with the goal of squeezing the maximum utilization out of an initial license before the software becomes obsolete, companies must now treat Software as a Service as a constantly renewing and updated functionality aligned to specific business roles.

The trade-off for the ease-of-use and support for SaaS is that enterprise software contracts are harder to negotiate because a number of buyers may end up purchasing SaaS and the purchase cycle is built to support consumerized purchases through P-cards, expense accounts, and line-of-business operational budgets rather than through a formal IT process.

As a result, the traditional world of SAM compliance and top-down procurement is being replaced with the need for cost management solutions that focus on:

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Sumeru Equity Partners Acquires MDSL and Combines with Telesoft

money-graph
Title Page: SEP Acquires MDSL
SEP Acquires MDSL

Note: Updated August 2nd with coverage links from Sumeru, MDSL, Telesoft, AltAssets, AOTMP, Crunchbase, PEHub, and Pitchbook.

In case you missed the announcement, as of July 31st, Sumeru Equity Partners has acquired MDSL and is joining Telesoft with MDSL to form a single Technology Expense Management company. I had a few opinions about the new MDSL that didn’t fit into my more formal analysis because they’re observations rather than directional guidance. If you haven’t read the formal Market Milestone yet, please check it out.

First, Sumeru Equity Partners has an interesting portfolio of companies that could be accretive to the new MDSL company. Take a look at their current portfolio:

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AI Vendor Profile: Cloudyn, Cloud Cost Management

From Pixabay
From Pixabay
From Pixabay

Yesterday, at the Boston Cloud Services Meetup at the Cambridge IBM Innovation Center, Amalgam Insights (AI) attended a Cloudyn-based event on “Overcoming the Challenges of Multi-Cloud Financial Management.” This presentation was headed by Account Executive Marcus Benson and focused on the challenges that Fortune 500 companies and managed service providers have in managing both complex single-vendor and multi-vendor cloud infrastructure environments.

Cloudyn is a cloud business and financial management solution founded in 2011 and set up as both a multi-tenant and multi-cloud solution running on AWS, Microsoft Azure and Google Cloud. Cloudyn supports a single pane of glass view for consolidated management and a real-time and continuous support of cost optimization for multiple vendors including Amazon Web Services, Microsoft Azure, Google Cloud, OpenStack, and Docker. Cloudyn has raised over $20 million in venture capital and seed funding and currently targets large enterprises, managed service providers, and companies with over 1 million dollars in annual cloud spend.

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