UMB AG: Acquisitions lead to even stronger cloud competence

The IT service provider UMB AG is massively expanding its range of services in the field of software development and cloud migration through two company acquisitions, thus further extending its service portfolio in the direction of holistic digital business transformation. One company, ubitec, is a startup that has already developed several innovative software solutions for the digitalization of business processes since its three-year existence. meshTec, the other company, brings in-depth know-how in cloud bridge technologies and cloud native. The 50 employees of the two acquired companies will become part of the UMB team. ubitec founder Patrick Brazzale will take over as head of the Software Solutions team and will also join the UMB Leadership Board.

Strategic milestone for UMB AG

"With the reinforcement of ubitec and meshTec, we are massively expanding our offering beyond the traditional portfolio in the direction of business transformation. The know-how and resources for the agile development of standard software, individual software solutions and modernization, automation, process optimization and migration technologies for the path towards cloud native enable us to offer a comprehensive range of services in all aspects of business transformation with immediate effect," says Matthias Keller, CEO and owner of UMB. The entrepreneur is thus setting another strategic milestone in the company's development, as UMB is now a one-stop partner for companies covering IT infrastructures and services as well as software products and migration technologies in the direction of Cloud Native - with a team of over 500 colleagues at ten Swiss locations and offices in Madrid and Vietnam. We spoke to Matthias Keller about the latest developments and trends, not least accelerated by the Corona pandemic.

Mr. Keller, the much-cited digitization push accelerated by the pandemic: How does this affect current business activities?
Matthias Keller: You say it right: It is a push that accelerates the development that has already begun even without the Corona pandemic. This is reflected in the fact that companies are now investing more in their digital transformation. Cloud and collaboration are big topics - the latter is reflected, for example, in the fact that we are allowed to implement many short-term projects on this - as are cybersecurity, process optimization and automation, and so on. Overall, we are seeing an acceleration in demand across our portfolio. However, it's hard to say if it's all related to the pandemic alone. We recorded a solid 2020; some customers brought projects forward, but others also postponed them due to the difficult economic situation.

In other words, the acquisition of ubitec and meshTec goes hand in hand with the growing demand for digitization solutions in companies?
The acquisitions are not primarily related to the digitization push. They are part of a clear and long-term qualitative growth strategy at UMB. They must make us better and more innovative. Our aim is to use the acquisitions to strengthen strategic core topics.

Which?
Ubitec is particularly strong in software development and application modernization and is strengthening us massively in these areas. It's a similar story with meshTec: Thanks to their know-how, we are taking a big step forward in the area of cloud native (software development approach in which applications are designed from the outset for use in the cloud, editor's note). And there are also synergies with ubitec. Overall, the acquisition of these two companies strengthens our existing competencies and rounds off our portfolio for business and technology transformation.

Was there also a "Plan B", for example in building up your own resources?
We always have a two-pronged approach to development. We are constantly building up our own expertise and, at the same time, looking for qualitative reinforcement in our strategic core areas. In doing so, we are very careful: It has to be right strategically, culturally and commercially in equal measure. We pay particular attention to the corporate culture.

This is no coincidence - after all, UMB AG bears the "Great Place to Work" label.
Yes, the basis for this is a good corporate culture. It is crucial that new teams fit to us in terms of lived values and that we fit to them. With ubitec and meshTec, this is now the sixth and seventh integration, respectively, since the start of today's UMB, all of which have worked out excellently and developed successfully in the long term.

Many companies - even large ones - still seem to have some catching up to do when it comes to using cloud technologies. In your view, what is this need to catch up?
Very many or almost all companies are undergoing a transformation from an old to a new reality in the course of digitization. This transformation is primarily taking place on four levels: The adaptation of their business model, the accompanying change in their organization and culture, the modernization of their application landscape, and the scaling of their data and IT platform. Companies are at different stages of progress in this process; everything from outdated to very agile structures can be found in the market. We at UMB AG can pick up our customers where they are today and competently accompany them in their transformation across all four levels.

So you're effectively becoming a "change manager" for companies?
We see ourselves as a partner for business and technology transformation. In this context, their statement is correct.

Why is cloud technology so central and why should SMEs jump on it now?
In principle, a cloud is flexible, scalable and cost-optimizing. However, it is important not to generalize, but to analyze exactly where the customer is today and where he wants to set his priorities in the future. The cloud is also not a panacea for everything, but must be considered individually. In addition, there are a wide variety of cloud models from private cloud to hybrid cloud to cloud native technologies from the large hyperscalers.

Which cloud solution (hybrid, on-premise; private or public cloud) is recommended for SMEs?
The solution with the best price-performance ratio and adapted to the customer's business strategy and business model.

What are the next steps after the acquisition and when will customers be able to benefit directly?
As of now! Since May 3, 2021, after an intensive preparation phase, we are now 1 team and 1 brand. From the beginning, we can already use synergies in concrete customer cases and are already in the implementation. In addition, it is also important that we get to know each other even better as a team, learn from each other and gradually grow closer together.

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