Madison Dearborn Lands Intermedia Cloud Platform
September 23, 2016
With cloud-based information technology (IT) platforms having so much value in the field these days—it's hard to think of any specific part of business that doesn't have some kind of cloud presence—the value of having cloud tools to work with is clear. It's even more clear that there's a value in having such tools to offer other businesses, and Madison Dearborn Partners recently landed a new such slate for itself, picking up Intermedia (News - Alert) from Oak Hill Capital Partners.
Intermedia's efforts have brought about a slate of new cloud tools that have proven secure and reliable in the wider field, and that makes these highly desirable in the field. That's the start Intermedia got as part of Oak Hill, and now with Madison Dearborn, the company expects new and faster growth thanks to augmented channel partner programs that should prompt new sales.
Given that the market for cloud business applications is up over $20 billion as of this year alone, it's clear that having an iron in this fire could be very profitable. Intermedia CEO Mike Gold offered side perspective that shows the importance of augmenting the company's channel program, noting that channel operations have an effect on about 65 to 75 percent of IT spending. Since one of Intermedia's big focuses is channel operations—it uses a “private label” model, along with providing support for key operations from marketing to operations—that allows it the best shot at sales.
The last five years have been huge for Intermedia as it is; revenues have reached $200 million, about three times what revenues were in 2011. The company has over a million users worldwide, over 6,000 active partners, and over 720 employees to its credit worldwide. It brought in a new channel leader who formerly handled United States partner sales for Microsoft (News - Alert) and built a complete technology platform, HostPilot, to offer up the over-30 integrated applications it currently has on hand.
All of these points have value separately, but looking at them in aggregate proves the complete value of the channel partner system, as well as the potential size of the cloud market itself. A company that can triple its revenues in five years—and not over a trivial base, either, getting the total into the nine-figure range—is clearly doing something right, and its emphasis on the channel shows how useful a strategy that can be. Throw in the astonishing gains of the market in general and it's clear that Intermedia is using an excellent strategy to get a growing piece of a market that is itself growing in a big way.
Whether Intermedia illustrates the value of the channel, the value of cloud IT, or both at once, one thing is much clearer: Madison Dearborn should have an impressive new property on its hands, generating value in short order.
Edited by Alicia Young
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