Cloud

Cloud Sherpas nets $40M to fuel its appetite for acquisitions

Need to get up and running in the cloud? Cloud Sherpas, the brokerage services company that helps its customers take advantage of the cloud, is betting that you’ll need some expert guidance.

Today, the Atlanta, Georgia-based company has raised $40 million in fresh funding. It is showing impressive signs of traction, and projects it will pull in north of $100 million in revenues next year. With partnerships with Google Enterprise and Salesforce.com, it boasts over 3,000 customers. “Cloud is experiencing increasing rates of adoption,” said David Northington, the company’s CEO in an interview. He said that most of Cloud Sherpas’ customers are highly unsatisfied with legacy on-premise solutions.

Cloud Sherpas works with customers in almost every vertical to aggregate cloud applications, and enhance the capabilities of existing software. Their bread and butter is to help companies shift from dinosaur programs like Outlook Exchange to Google’s suite of applications. “We help people leverage Google’s app engine and platform as a service,” said Northington.

To get their foot in the door on the West Coast, the company has successfully closed a deal to acquire CloudTrigger, a Southern California-based cloud consultancy focused on helping organizations implement customer relationship management (CRM) tools in the cloud. CloudTrigger was an attractive proposition as it works with brand-name customers like AOL and USA Today.

Cloud Sherpas aims to make a name for itself as an industry consolidator.  Since 2007, the firm has merged with or acquired eight cloud consultancies.  In March, we reported that it received $20 million in funding, and merged with GlobalOne.

“Our approach is all about finding quality companies with huge upside, and helping them reach their full potential” said Ashton Newhall, a co-founder at Greenspring Associates in a statement. “Given its first mover advantage, unbelievable success to date and massive greenfield opportunity, Cloud Sherpas fits our model perfectly.”

The company raised $40 million in second round capital from existing investors Columbia Capital and Delta-V Capital, joined by Greenspring Associates, and Queensland Investment Corporation, one of the largest institutional investment managers in Australia.

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