Feeds

Lumison swallows DediPower Managed Hosting

Hungry ISP gobbles another server babysitter

HP ProLiant Gen8: Integrated lifecycle automation

Lumison has snapped up Reading-based cloud and co-lo player DediPower Managed Hosting for an undisclosed sum.

This is the second deal this year for private equity backed, managed services provider Lumison, run by former Computacenter director Mark Howling, after forking out £22m for data centre co-location outfit Blue Square Data in March.

Demand for IT infrastructure-as-a-service is on the rise as businesses seek to give employees a "scalable and flexible way of working", said Howling in a statement.

The acquisition takes Lumison's turnover to £27.5m, up from £6.4m three years ago, and pushes the staff headcount to 130.

Lumison, headquartered in Edinburgh, claims it operates eight data centres across the UK, hosting customers' online operations, biz apps and development environment.

DediPower Managed Hosting made strides in its last financial results for the year ending 30 September 2010, with an operating profit of £397,000 on revenues of £6.5m. Around 70 per cent of its sales were derived from managed services.

M&A activity in the fragmented IT managed services space is ramping as a number of firms try to build scale to target small and mid-sized customers.

Only last week private equity specialist Lyceum Capital splurged £30m on London-based mid-market managed services firm Adapt.

Veteran analyst Anthony Miller, managing director at TechMarketView, said in a note today that the SME infrastructure managed service market is "rampant with players and therefore ripe for consolidation".

"However I do not see any one player ever taking a dominant position as that’s just not how the IT services mid-market works in practice. But I do believe that the players with a better chance of success (indeed survival) will be those that climb well above ‘vanilla’ co-lo," he added. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.