SCC boosts data centre and hosting biz with Fluidata investment

Source: Megabuyte.com

In a world gradually moving off-premise and in to the data centre, and particularly to Hybrid Cloud, mixing public and private compute, storage etc, the investment in Fluidata both diversifies SCC from its core on-premise infrastructure services business as well as significantly enhancing its Data Centre and Cloud proposition.

With Hybrid Cloud comes the need for very high speed, reliable and low latency connectivity, which Fluidata is very well placed to provide to SCC customers (particularly with its Layer 2 and Layer 3 focus).

In revenue terms, Fluidata’s £17-18m revenue adds little to SCCs £600m+ of UK revenues (or £1.7bn in total). However, strategically this is a far more important deal in terms of its impact on SCC’s data centre and Cloud business which, at an estimated £50m or so revenues, is now one of the larger independent data centre and Cloud businesses in the UK.

SCC normally acquires businesses outright, buts its stake at least gives it the option to work with Fluidata’s young and very successful management team, to get to know the telephony business, and buy full control if all goes to plan.

More generally, this is a good example of the convergence of telecoms and IT currently happening at an increasing rate. In an IP world, WANs and LANs become increasingly inseparable, voice becomes just another application, and the move to Hybrid Cloud requires organisations to take a more holistic view of their total telecoms and IT needs.

The new world is a threat to existing on-premise focused infrastructure service providers such as SCC, but SCC for one is making the transition to the new world as good as any of its peers, helped by this latest deal.

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