The UKFast Group has announced a strategic consolidation of its three successful brands. This move aims to unify ClearCloud, the UKFast Public Sector, and the core hosting business into a cohesive entity.
Despite challenging market conditions, this decision underscores a commitment to delivering high-quality managed support and migration services, especially in the public cloud hosting sector.
Strategic Consolidation of Brands
In a significant move, the UKFast Group has brought together three of its prominent brands under one umbrella. This consolidation includes ClearCloud and the UKFast Public Sector, integrated within the core hosting business. This strategy is expected to enhance the company’s synergy and streamline its offerings.
Despite the looming uncertainties due to Brexit, ClearCloud has demonstrated resilience with 11 customer acquisitions in its first trading quarter. This accomplishment reflects the brand’s focus on high-quality managed support and migration services for public cloud hosting from major providers like Amazon Web Services (AWS) and Microsoft Azure.
Growth in the Public Sector
The public sector division of UKFast has garnered significant momentum, particularly following the acquisition of Secure Information Assurance (S-IA) in 2017. This division counts high-profile clients such as the Cabinet Office and the Ministry of Defence.
The UKFast Public Sector is anticipated to experience over 50% growth in 2019, driven by the combined efforts and strategic alignments within the group.
CEO’s Vision and Market Strategy
CEO Lawrence Jones has articulated a clear vision for the company’s future, emphasizing the importance of integrating ClearCloud and UKFast Public Sector into the dynamic environment of UKFast.
‘ClearCloud and UKFast Public Sector sit well within UKFast’s dynamic environment,’ Jones stated. He highlighted the synergies within their customer bases and the cultural fit that facilitated this consolidation.
According to Jones, the investment in ClearCloud is particularly timely. Businesses are seeking multi-cloud strategies to distribute workloads across multiple providers, and this consolidation positions UKFast to better support such needs.
Addressing Market Conditions
The current market conditions, marked by Brexit uncertainty, have necessitated businesses to seek cost savings and efficiencies from their key suppliers. In this landscape, UKFast’s increased focus on research and development has placed it in a strong position to assist clients in boosting productivity and accelerating online sales.
Jones emphasized that tough market conditions often lead businesses to rely more heavily on their suppliers for competitive advantages.
Operational Scale and Workforce
With a workforce of 350 employees spread across its Manchester headquarters and London office, UKFast is well-equipped to handle its extensive client base. The company provides cloud, dedicated servers, and colocation services to over 5,000 clients.
Private equity firm Inflexion owns approximately a 30% stake in UKFast, following a significant investment deal in late 2018 that valued the company at £405 million.
Financial Outlook and Turnover
The combined turnover of the newly consolidated UKFast Group is set to exceed £60 million. This impressive financial outlook is a testament to the group’s strategic vision and effective implementation.
The latest developments affirm the group’s robust market position and its potential for sustained growth in the coming years.
Future Prospects and Industry Impact
The consolidation is poised to create a more unified and efficient business entity, capable of delivering enhanced value to its clients. This move is likely to set a precedent in the industry, encouraging other companies to adopt similar strategies.
In summary, the UKFast Group’s consolidation of its brands signifies a strategic step towards creating a more integrated and robust business structure.
This move not only promises enhanced efficiencies and growth but also underscores the group’s commitment to meeting the evolving needs of its clients.