Dimension Data subsidiary Internet Solutions (IS) has bought a majority stake in Synaq, a local Linux service provider, for an undisclosed sum.
Synaq was founded in 2004, and provides Linux and open source software-based solutions on a software as a service (SaaS) basis, targeted mainly at the small and medium enterprise (SME) segment.
Wayne Speechly, IS's communication services executive, says the deal boosts the company's ability to address the growing need for managed communication services in the SME market. Synaq will benefit from access to IS's infrastructure, and gain a base of support for African and international expansion, he adds.
Speechly explains the decision to acquire a stake in Synaq was driven largely by the rapidly increasing adoption of hosted services by SMEs. “The corporate governance, legal and regulatory requirements around the management and storage of data and information, especially e-mail, are driving the adoption of hosted services.
“While IS has always catered to the SME market with our access and hosted exchange services, we needed the flexibility and adaptability that a smaller, specialist independent software vendor, like Synaq, could offer, especially with their Linux and open source-based solutions,” says Speechly.
Buy, not build
He adds the flexibility allows IS to quickly adapt to market changes and offer bundled solutions to meet specific needs. “It also gives us great flexibility in terms of our price points, due to the less onerous licensing fees associated with Linux and open source software.”
Linux offers a dynamic development platform, with strong local support for cloud-based applications, says Speechly. “As Linux and open source has historically not been IS's area of expertise, it made more sense to acquire a company that has the skills and track record to cater to the growing demand for these services.”
There are also important synergies between the stability and capabilities of IS's tier four data centre network and the stability of the Linux platform, notes Speechly. “This combination will allow us to effectively deliver applications from the cloud and meet any level of demand for hosted services.”
Growth opportunities
Synaq MD Yossi Hasson says: “Initially, we provided support and maintenance for various hosted Linux e-mail services and also developed the first anti-spam SaaS solution in SA.”
Hasson comments that, as the hype around Linux settled and its adoption as an enterprise-ready solution increased, “we diversified and added the development, deployment and hosting of e-mail branding, archiving, disaster recovery and continuity, and collaboration solutions, as well as the provisioning of other cloud-based Linux applications to our product and service offering”.
The acquisition will give the company the ability to scale and grow at a much faster rate, adds Hasson. “When it comes to the development and deployment of cloud-based applications, infrastructure is key.”
Hasson explains that the company is now better positioned to expand and grow into other markets. “We now have strong backing and support, and can tap into the African and global footprint of IS and their parent company, Dimension Data.”
Synaq's operations, structure, management and staffing will remain unchanged following the acquisition, and the company will continue to serve customers from its Johannesburg head office.
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