2nd Watch blends cloud offerings, pro services amid growth

The professional services and managed cloud company has set its sights on M&A in 2022. The firm also seeks to develop an integrated service experience under new leadership.

In a bid to continue its high-growth trajectory, 2nd Watch has begun to consider mergers and acquisitions for the first time. The company also aims to unite its managed cloud and professional services offerings under one executive.

The Seattle-based company said the second quarter was its most successful quarter to date, noting five consecutive months of record revenue. Year-over-year growth topped 30%, said 2nd Watch CEO Doug Schneider.

"Our growth to date is all organic," Schneider said. "Other firms have pursued M&A strategies to grow, and that will, ultimately, become part of our growth, as well, in the future."

Schneider said the company could start its M&A foray as early as 2022. Cloud consulting services have seen an uptick in investor dollars this year.

Integrated services delivery

While the M&A strategy remains under consideration, 2nd Watch has embarked on an integrated services delivery approach.

The company promoted Chris Garvey, then-executive vice president of cloud services, to COO. Garvey's remit will include growing the company's professional services and project-based work, as well as its managed cloud services business, which drives recurring revenue. The company now aims to scale those parts of its business under a single, operational leader, Schneider said.

Doug SchneiderDoug Schneider

"It's an opportunity for us to deliver a more cohesive, integrated service experience," Schneider noted. "The lines between professional services and managed services keep blurring. We expect to see more of an intertwined combination over time."

Relationships already exist between the company's services. For example, professional services -- such as consulting and assessment projects -- often serve as the tip of the spear for doing more work, including managed services, Schneider said. The company also markets offerings that blend professional services and managed services.

The new approach to services comes as 2nd Watch broadens its offerings to take on multi-cloud projects. The company originally focused on AWS. While AWS accounts for most its business, 2nd Watch has added Google and Microsoft Azure to its cloud partner roster.

"A couple of years ago, it was just AWS," Schneider said. "What we are seeing is we are asked to optimize cloud spend and look at it holistically across all platforms."

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