Industry:
Business Services
Investment Status:
Current
3Cloud is a leading pure-play Microsoft Azure service provider, offering end-to-end cloud lifecycle services such as strategy, design, migration, modernization, development, data & analytics and ongoing managed services. The company is a Gold-certified Microsoft Azure technology consulting firm and is the winner of many Microsoft partner awards, including the U.S. Partner of the Year Award, the most distinguished award for all of Microsoft’s services partners globally.
At the time of our investment in 3Cloud, Gryphon saw the opportunity to create the top pure-play market leader in the highly attractive and fast-growing Microsoft Azure cloud services $15 billion market, which was projected to grow 20-30% for the next five years. The company featured a professional management team led by two co-founders each ran $1 billion businesses for Microsoft. Its highly scalable platform processes and practices and a differentiated go-to-market relationship with Microsoft provides a strong base on which to grow organically and through acquisitions. Management selected Gryphon as its first institutional capital on the basis of the firm’s thematic approach and executive relationships, coupled with previous relevant experience stewarding founder-led companies through their next stages of growth.
Key Initiatives
- Organized and scaled sales team fourfold to increase geographic coverage and better align with Microsoft sales channel. Invested in vertically aligned strategic sales teams to improve ability to drive large and long-term relationships with enterprise clients.
- Expanded differentiated service offerings and talent in Data, Analytics & AI and Application Innovation to complement infrastructure capabilities.
- Further professionalized management team to support growth with CFO and CPO hires, established global delivery center in Manila, created “Center of Excellence” to scale HR and recruiting and implemented best-in-class IT systems.
- Developed acquisition strategy and integration playbook to expand capabilities and accelerate growth.
Outcome
- Won two Worldwide Partner of the Year and two U.S. Partner of the Year Awards in 2023, as well as a finalist for two other Worldwide Partner of the Year Awards.
- Recognized as Microsoft’s #1 U.S. Co-Sell Partner with 600+ Co-Sell wins (200% YoY growth).
- Reached nearly 9x increase in topline with CAGR of 70%+ since acquisition, driven by both organic initiatives and strategic M&A.
- Achieved scalable and cost-effective talent model via build out of global delivery center in Manila, resulting in an optimized labor mix to drive higher margins.
- Completed six acquisitions to date, enhancing management and adding key strategic capabilities to the product offering.