There was a bit of M&A out in the Midwest over the weekend, with Carrier Access announcing the purchase of Tektivity. The two companies hope to find greater opportunities together, marrying a complementary set of communications and managed services.
Tektivity offers managed IT services across Iowa and into Illinois, while Carrier Access focuses on helping enterprises in Iowa, Missouri, and Minnesota with their communications networks and cloud infrastructure. There's some nice geographical overlap there in Iowa of course, with room for revenue synergies as they take the combined product set to market in the greater overall service area.
The overlap between the two technologies has certainly seen some network operators in recent years make moves like this to increase their addressable market with enterprises. Of course, it's not a foolproof plan. We've seen Earthlink stumble over the past few years trying to merge managed IT services and legacy telecom services together into a unified whole. But that doesn't mean the general idea isn't a good one, and Carrier Access and Tektivity have a regional and local focus that they hope will give them an edge over larger national providers.
We'll surely continue to see service provider consolidation in and around the cloud over the next year or two.
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