Cloud Sherpas acquires CloudTrigger, raises $40 million

Cloud Sherpas raises a large Series B round and acquires CloudTrigger to boost its footprint integrating cloud applications.

Cloud Sherpas, an Atlanta-based cloud integrator, has acquired CloudTrigger in a move that positions the company as a cloud services broker. In addition, Cloud Sherpas raise $40 million in venture funding.

The company initially started out as a reseller and integrator for Google Apps and Since then, Cloud Sherpas has steadily expanded. The move to acquire CloudTrigger broadens its footprint in the U.S. and customer base. CloudTrigger focuses on CRM cloud applications and customization and focuses primarily on

In an interview, Cloud Sherpas CEO David Northington said the company plans to acquire more companies. Northington said the plan is to aggregate multiple cloud applications, resell them and offer customers a single bill, update support and data. Cloud Sherpas will also integrate cloud services with on-premise apps. In October, Cloud Sherpas hired Gary Diorio, a former Capgemini exec, to lead its CRM business.

Cloud Sherpas' big plan is to be a top cloud services broker. Gartner has popularized the cloud services broker theme. The general idea is that brokers will make cloud deployments easier. Technology buyers will also go the cloud broker route because they won't have the skills to manage multiple providers.

Generally speaking, cloud services brokers come in three flavors. They integrate, aggregate or customize. Cloud Sherpas aims to cover all three buckets. Here's the overview of what a cloud broker does via Gartner. 



"In almost every case, cloud applications are integrated with on-premise apps," said Northington. As for the competition, Cloud Sherpas competes with legacy partners and integrators as well as companies like Appirio. However, the cloud broker market is large enough that the pure plays are rarely bumping into each other to battle for customers. "This is a big space," said Northington.

As for the venture funding, Cloud Sherpas Series B round was led by existing investors Columbia Capital and Delta-V Capital and joined by Greenspring Associates and Queensland Investment Corporation, an Australian institutional investor.

Cloud Sherpas has 350 employees, 3,000 customers and expect revenue of more than $100 million in 2013.