Growth capital investor Holland Venture invests in Eshgro, a leading cloud services broker with an innovative platform. The growth capital investment enables Eshgro to further develop its unique platform and accelerate its international growth.
Cloud changes IT consumption
The cloud changes the way companies consume IT. Compared to on-premise IT solutions, the cloud offers more flexibility, 24/7 accessibility from any location, always up-to-date data and information and is inherently more secure. According to forecasts from various research agencies, the global cloud market will grow to around € 180 billion by 2020, With a CAGR of 21.5% , , which is 7x faster than global IT spending.
These developments create new challenges for value added resellers and managed service providers, to which Eshgro has developed a technologically innovative solution: the CSB Suite. This unique platform makes it possible to see, within 10 minutes, how to securely assemble a functional cloud solution for every existing IT environment, and its associated financial impact.
Value added resellers and managed service providers can fully customize the platform using Eshgro’s wide cloud services offer. In addition, they can easily integrate their own service package. Eshgro helps value-added resellers and managed service providers to convert their business model from project-based pricing to a subscription model. This enables them to remain relevant in a rapidly changing market and to create more value. Eshgro has proven its success of the platform through value added resellers who have seen their subscription revenues grow by over 100% for over 3 consecutive years.
To date, end users have more than 700 different business applications running on Eshgro’s platform. The key benefits of using the CBS Suite include the ability to bring your own software to the cloud, its cost transparency, and its flexibility. The fact that Eshgro is multi-certified means that governments, financial services and healthcare providers can safely host their applications and data in the cloud. The platform is used by a growing number of mid-sized corporates, with combined revenues of more than € 1 billion.
Focus on growth and scalability
“We are ready for the next phase, where we focus on the growth and scalability of our platform. The investment enables Eshgro to grow internationally and serve the largest value-added resellers and managed service providers in the market.”, says Anton Loeffen, CEO of Eshgro. “We have taken Holland Venture on board to make an active contribution to the further development and growth of Eshgro. Through their years of experience with growing companies, Holland Venture offers an important strategic and commercial added value.”
According to Niels van Aalten, partner of Holland Venture, the fast-growing and competitive cloud service market is developing rapidly. “Companies are increasingly looking for an efficient and safe working environment in the cloud that closely matches their business activity. In addition, companies want insights and flexibility in IT costs per employee. The Eshgro platform seamlessly adopts this development. This investment fits well within our investment strategy and we therefore like to support Eshgro’s further commercial expansion.”
Associated advisors in the Eshgro transaction are Haagstate attorneys, De Breij Evers Boon lawyers and investment bank Bryan Garnier.