11:11 Systems continues its acquisition spree

11:11 Systems has continued its spending spree with the successful acquisition of Brisbane-based Digital Sense. It made its move after Aussie Broadband decided to separate out its VMware business into a separate business unit. Like many companies, Aussie Broadband’s decision came against a backdrop of significant changes to the VMware Cloud Service Provider (VCSP) ecosystem. 11:11 Systems is taking advantage of those changes to become one of the largest global VMware partners.

Marc Beder, General Manager, APAC, 11:11 Systems, said, “This acquisition reflects 11:11 Systems’ continued commitment to growth and investment across APAC.

“By bringing Digital Sense into 11:11, we’re expanding our presence in Australia while strengthening our ability to deliver world-class cloud and managed services throughout the region. We’re excited to build on Digital Sense’s strong reputation and continue providing innovative, secure and scalable solutions that evolve with business needs in the region.”

What does this give 11:11 Systems?

Based in Brisbane, Digital Sense owns its own data centre in Queensland, Australia. It gives 11:11 Systems another Australian data centre that it can use to provide failover to its customers in the country. Other services include Disaster Recovery as a Service (DRaaS) and Storage as a Service (SaaS).

However, customers will also be paying attention to what happens with existing services. There is a clear overlap between the services that Digital Sense and 11:11 Systems already offer. At some point, it is likely that there will be a rationalisation of services and solutions.

In terms of VMware, Digital Sense offers private, hybrid, and public cloud options. Its primary solution is called VMware Cloud Verified. It is backed by a local 24/7 support team.

Digital Sense also promoted itself as keeping all customer data inside Australia. That is a key data sovereignty message that will appeal to customers in the government, defence, and financial services sectors. They will be looking at how this will strengthen their data compliance and control.

What isn’t clear is whether Digital Sense has any arrangements with Aussie Broadband over the use of its datacentres. If it does, then that will also give 11:11 Systems access to additional datacentre capacity. That will enable it to build out newer and higher-capacity services.

Enterprise Times: What does this mean?

11:11 Systems has aggressively taken advantage of Broadcom’s changes to the VMware partner channel. While other companies are busy trying to navigate the changes and decide where their business sits, it is building a giant. It already sits atop that channel as a Pinnacle partner. That gives it access to co-marketing with Broadcom, which also allows it to further broaden awareness of its solutions.

The company has been selective in the businesses it has acquired. They all come with assets such as datacentres and trained support teams. Both are critical to its strategy, with the latter being a requirement of the Broadcom Pinnacle programme. Additionally, all those acquisitions come with vertical market solutions and a customer base that can be cross-sold to.

It will be interesting to see where it goes next. Will we see a period of reflection and integration or a push for more acquisitions? The former is important as it now has a wide range of services and applications from the different acquisitions. Rationalising them to reduce waste and improve what they have is essential.

The latter will depend on where the company sees a need to strengthen its existing business model. That is something that is unclear. Perhaps its next move will be an AI business.

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