Improving IT solutions and services

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In this episode of Channel Insider: Partner POV – Your source for untapped opportunities and unfiltered opinions in the IT channel – host Katie Bavoso talks with Rich Falcone, CEO of AHEAD, a company specializing in building and managing digital platforms for enterprise clients.

With a rich history in the IT sector, Falcone brings his extensive experience gained in the industry for two decades, most recently as CEO and President of CDI prior to its acquisition by AHEAD in February 2024. Discussing the integration and prospects, Falcone shares his vision of how the consolidation will benefit customers and supplier partners.

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AHEAD Mission and Services

Falcone explains in detail what AHEAD offers to the market. He notes that digital transformation, hybrid cloud and cybersecurity are critical areas where AHEAD excels. These services are becoming increasingly important as companies look for solid IT solutions regardless of size. “Whether you are seven or seventy, cybersecurity and digital transformation are now an integral part of everyday life,” he says, emphasizing the ubiquity of these technologies.

AHEAD stands out by providing comprehensive solutions that go beyond just project implementation. Falcone notes the frustration many clients have with vendors who can only manage parts of a project. AHEAD and CDI’s combined service catalog offers a holistic approach, enabling customers to take advantage of multi-cloud environments, automation and digital marketplaces without having to coordinate multiple vendors.

This integration ensures a seamless digital experience supported by experienced engineers, professional account management and a strong back office culture.

Information about customer industries

When Bavoso asks about the industries that serve AHEAD and CDI, Falcone highlights their successes in a variety of sectors, including finance, healthcare, law, manufacturing, and state and local government. It highlights the interconnectedness of both companies’ customer bases, especially in finance and healthcare, which are dominant sectors for both. This merger allows for broader service offerings and depth in these key industries.

The acquisition of CDI by AHEAD expanded the catalog of services available to customers, filling the gaps between the two companies. For example, Falcone notes that CDI provides robust security capabilities such as ethical hacking and infrastructure management, while AHEAD enhances digital solutions, application transformation and financial operations (FinOps). This complementary relationship allows both entities to offer their clients a more comprehensive and efficient solution, further strengthening their market position.

Benefits for IT suppliers and strategic development

Bavoso examines how the merger made AHEAD a more valuable partner for IT vendors. Falcone responds that scale is a critical factor in this industry. He explains that large vendors like ServiceNow and Dell benefit from working with a large, scalable company that can provide a wide range of services and modules. Smaller suppliers also benefit from AHEAD’s deep engineering expertise and the broad reach of its extensive sales and marketing organization.

Falcone explains that AHEAD’s ability to offer niche expertise and solutions at scale makes it an attractive partner. This dual capability enables suppliers to achieve technical precision and market speed that is often difficult to achieve. This synergy is particularly attractive to new and emerging security vendors because it allows them to leverage AHEAD’s infrastructure and reach without compromising on specialized support.

The future of mergers and acquisitions in the IT solution provider community

The conversation turns to the broader trend of mergers and acquisitions (M&A) in the IT solution provider community. Falcone confidently predicts that M&A activity will continue to increase. He argues that consolidation is a natural and beneficial part of the industry’s evolution, driven by the need for companies to quickly adapt to technological advances and customer demands.

“You can build it or you can create a strategic combination. There is no wrong answer,” he says, emphasizing the strategic importance of mergers and acquisitions in filling value gaps and accelerating market readiness.

Falcone mentions that strategic combinations are often the most effective way to innovate and scale quickly. He cites several examples of successful acquisitions in the technology industry, including significant moves by companies such as VMware and Cisco, to illustrate that mergers and acquisitions are the cornerstone of growth and innovation. This perspective offers valuable insight for companies considering strategic paths.

Investing in customer relationships

Bavoso asks how Falcone addresses customer challenges and communicates the value his team provides. From the very beginning, Falcone emphasizes the importance of investing in the client. He states, “We want to understand the client’s program and what they are trying to implement over the next X number of years, what it will ultimately look like.” This approach emphasizes the importance of building long-term relationships rather than looking for quick wins.

This highlights an important lesson for companies: investing in understanding a customer’s long-term goals and needs can result in more lasting and profitable relationships. Falcone’s strategy involves leveraging resources, often initially free of charge, to gain a deep understanding of the client’s goals. This proactive investment builds trust and lays the foundation for more tailored and practical solutions.

Strategic development and acquisitions

Looking ahead, Bavoso asks about AHEAD’s plans to grow the company from $3.7 billion to $6 billion by 2026. Falcone emphasizes that acquisitions should add value to the customer base. He notes: “Anyone can buy income. So I don’t think purchase revenue is a measure of success.

He recommends that acquisitions should be evaluated not only on financial metrics, but also on their potential to enhance the overall customer value proposition. “If customers see more value in our services and increase their wallet as a result, please share with us. Well, then this acquisition makes sense for everyone. For the employee, for the partner and for the customer.”

Effective development strategies involve thoughtful integration and use of acquired strengths to the benefit of existing customers and employees. This approach ensures sustainable and favorable economic growth in all areas.

Watch the video or podcast above to hear more from Katie Bavoso and AHEAD President Rich Falcone. Don’t forget to like and subscribe for future interviews with solution providers and thought leaders, as well as special episodes and opportunities!

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