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Mergermarket Interviews Cloudticity CEO & Founder, Gerry Miller

Cloudticity, a cloud-based managed services provider for healthcare organizations, may be positioned to launch a sale process in 2H24 or 2025, said Gerry Miller, CEO and sole owner.

Miller said he would hire an advisor and look to sell a majority stake in the Seattle-based business, which he founded in 2011. In the meantime, the 55-year-old executive said he is entertaining inbound interest.

Cloudticity generated revenue of approximately USD 20m in 2023, with more than 90% of revenue recurring, according to Miller. The company has been profitable and cash-flow positive since its inception, with USD 100m in revenue projected by 2027 or 2028, he said.

Sale valuations peaked at around 7x revenue prior to COVID-19 and are now around 4x-5x revenue, though Miller said he is “seeing some recent acceleration” of multiples.

Cloudticity’s technology helps manage and automate compliance and security, and organize and analyze data for Amazon, Google and Microsoft cloud-based platforms.

The company has gross margins of 60%-70%, compared to the average 30%-40% for most managed services providers (MSPs) due to the cost of labor differential, Miller said. Cloudticity’s platform is primarily software-based, with a significantly reduced reliance on human labor to address or troubleshoot issues for clients, he explained.

The business caters to healthcare technology firms, providers, payors, government entities, genomics companies and life sciences companies. It recently expanded into academic medical centers, Miller said. Clouticity's roughly 50 clients include New York State and Michigan Health Information Network Shared Services, he added.

Proceeds from a private equity investment would primarily boost marketing, sales, and platform development but could also be used for international expansion and acquisitions, the CEO noted. Cloudticity operates primarily in the US and sees an opportunity to enter countries such as Canada, Singapore, Japan and Germany, which it would likely do through M&A, Miller said.

Cloudticity receives regular approaches from potential buyers, and Miller said the company hired an undisclosed banker to run a minority stake sale process in 2019. Miller said he found the terms of a minority stake sale “unfavorable,” so the company went back to the market for a majority stake sale. By that time, the market had soured from the pandemic, he explained.

There has been a “tremendous amount” of consolidation in the MSP space, particularly among private equity firms looking for a platform to roll up the highly fragmented industry, especially around managed security, according to Miller. Most MSPs are smaller, regional players with around USD 5m in revenue, he added.

Larger players in the space include PwC, Deloitte and ClearDATA, though Miller said Cloudticity’s primary competitor is internal IT departments. Austin, Texas-based ClearDATA has raised more than USD 80m in capital from investors including Merck Global Health Innovation Fund and Norwest Venture Partners. Cloudticity has a remote workforce of 35 people. The company uses law firm Honigman.

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| Author Deborah Balshem, tagged in News

Cloudticity Joins CrowdStrike Powered Service Provider Program

Cloudticity, a leading healthcare cloud managed services provider, announced today that it has joined theCrowdStrike Powered Service Provider program. With the AI-native CrowdStrike Falcon Platform as the foundation, Cloudticity delivers the technology, expertise and resources organizations need to stop breaches. CrowdStrike Powered Service Providers can choose to incorporate CrowdStrike package bundles or individual CrowdStrike Falcon platform modules into their security offerings, in addition to gaining access to expanded market opportunities, enhanced go-to-market support and executive sponsorship.

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| Author www.prweb.com, tagged in News

Cloudticity Achieves HITRUST R2 Certification

Cloudticity, a leading digital enablement partner, announced that their managed cloud solution for healthcare, Cloudticity OxygenTM, has earned certified status by HITRUST for information security.

HITRUST Risk-based, 2-year (r2) Certified status demonstrates that Cloudticity OxygenTM has met demanding regulatory compliance and industry-defined requirements and is appropriately managing risk. This achievement places Cloudticity in an elite group of organizations worldwide that have earned this certification. By including federal and state regulations, standards, and frameworks, and incorporating a risk-based approach, the HITRUST Assurance Program helps organizations address security and data protection challenges through a comprehensive and flexible framework of prescriptive and scalable security controls.

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| Author www.prweb.com, tagged in News

Health Samurai & Cloudticity partner to offer rapid, secure FHIR adoption and innovation

As the healthcare industry rapidly adopts the Fast Healthcare Interoperability Resources (FHIR) standard to meet interoperability needs and compliance mandates, Health Samurai and Cloudticity have announced their technology partnership. Uniting their flagship products - Aidbox FHIR platform and Cloudticity Oxygen, this collaboration aims to support healthcare organizations and health IT vendors to meet their FHIR needs while simplifying the security, compliance, and operational work required for building and maintaining FHIR environments.

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| Author www.prweb.com, tagged in News

Cloudticity Now Supports Google Cloud Platform

Cloudticity announced today that Cloudticity Oxygen™, the company’s HITRUST-certified managed cloud solution for healthcare, is now supporting Google Cloud Platform (GCP). Cloudticity customers can now enjoy the benefits of the reliable Google Cloud Platform, with modernized management and deployment.

Founded in 2011, Cloudticity’s core focus is helping healthcare organizations be successful on the public cloud. As a Google Cloud partner, Cloudticity offers customers using GCP access to unprecedented cloud efficiency to help them maintain compliance, manage multi-cloud environments and accelerate HIPAA workloads with the reliable security of Cloudticity’s HITRUST-certified platform. Key features include:-

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| Author www.prweb.com, tagged in News

Cloudticity Oxygen Now Available On Microsoft Azure Marketplace

Cloudticity, today announced the availability of Oxygen, the company’s HITRUST-certified managed cloud solution for healthcare, in the Microsoft Azure Marketplace, an online store providing applications and services for use on Azure. Cloudticity customers can now take advantage of the productive and trusted Azure cloud platform, with streamlined deployment and management.

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| Author www.prweb.com, tagged in News, press

Managed Kubernetes Service For Healthcare | Cloudticity

Cloudticity announced today it has released a complete end-to-end Kubernetes automation solution, further strengthening the company's support for healthcare organizations using Amazon Web Services (AWS).

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| Author finance.yahoo.com, tagged in News

Cloudticity Brings HIPAA Compliance to Amazon Cloud Native Workloads

The move to the cloud is one that started more than a decade ago for some companies and has yet to happen for some others. The reasons for the lag are varied, but for some governmental regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), which regulates data privacy concerns for companies in the healthcare sector, are also to blame for the delay. With requirements around data retention and encryption, it can be easier to stay with what you know rather than make the move to the latest technology.

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| Author TheNewStack.io, tagged in News, press

Cloudticity Recognized On CRNs 2020 MSP List For Groundbreaking Data Interoperability

SEATTLEFeb. 20, 2020 /PRNewswire-PRWeb/ -- Cloudticity, a Healthcare-focused cloud MSP, announced today that CRN®, a brand of The Channel Company has named Cloudticity to its 2020 Managed Service Provider (MSP) 500 list in the Pioneer 250 category. This popular list identifies North American solution providers that deliver operational efficiencies, IT system improvements, and a higher rate of return on investments for their customers. These accomplished MSPs work tirelessly to guide their customers and create solutions for complex IT issues.

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| Author markets.businessinsider.com, tagged in News, press

Cloudticity Named to ChannelE2E Top 100 Vertical Market MSPs

Cloudticity has been named to After Nines Inc.’s ChannelE2E Top 100 Vertical Market MSPs list and research (http://www.channelE2E.com/top100) for 2020. The annual list and research (hashtag: #Top100MSP) identify and honor the top 100 managed services providers (MSPs) in healthcare, legal, government, financial services, manufacturing and additional vertical markets.

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| Author www.prweb.com, tagged in News, press

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