CloudScale365 recognizes that any organization’s strength lies in its leadership’s expertise and strategic foresight. In an exclusive blog series, we will present in-depth conversations with the key executives steering CloudScale365 toward continued excellence in the IT services landscape.
Through these interviews, readers and customers will better understand our leadership principles, industry knowledge, and forward-thinking approaches that define our commitment to delivering exceptional value and innovation. Each interview will offer a unique perspective on how CloudScale365 addresses the complex challenges modern businesses face, focusing on enhancing operational efficiency, security, and customer satisfaction.
Meet Patrick Hannon- Chief Executive Officer at CloudScale365
Interviewer: Thank you for taking the time to speak with us today, Patrick. To start, could you share a bit about the origins of CloudScale365 and your involvement with the company?
Patrick Hannon: Absolutely. In 2015, we made the strategic decision to acquire two companies—Exchange My Mail and Link to the Cloud, both Microsoft partners. We merged them to create CloudScale365. That was nearly a decade ago. Since then, we’ve completed 13 acquisitions, growing our customer base to over 3,400 clients worldwide. One of the things we’re most proud of is our customer retention. The average customer has been with us for more than 11 years, which speaks to the quality and consistency of the services we provide.
Interviewer: That’s impressive. What would you say is the key to such long-term customer retention?
Patrick Hannon: It really comes down to delivering consistent, high-quality service. We focus on retention through exceptional customer service and low attrition rates. We ensure that we’re competitively priced, but we also make sure our services add real value. For example, last year we raised our rates by 15%, yet we didn’t lose a single customer, which shows how much our clients value what we bring to the table.
Interviewer: With such a strong foundation, what are the current areas of focus for CloudScale365 in terms of markets and services?
Patrick Hannon: We are highly concentrated on the U.S. market, specifically targeting small to medium-sized businesses. Our primary offering revolves around migrating clients’ on-premises servers to our cloud infrastructure. We’ve also launched a co-managed IT platform, which allows larger enterprises to leverage our resources to fill gaps in their IT operations. This service has been a game-changer, enabling us to maintain strong relationships with larger companies that may need specific support or expertise without outsourcing their entire IT department.
Interviewer: What sets CloudScale365 apart from competitors, especially when it comes to pricing?
Patrick Hannon: We don’t focus on price as our primary selling point. In fact, our hosting costs more than some major players like DigitalOcean or Amazon, and our managed services aren’t the cheapest in the market. But we’re also not the most expensive. We map our pricing structure to the geographical market we serve and customize our approach to clients’ needs. The long-term relationships we build are worth more than any short-term financial gain.
Interviewer: You mentioned focusing on key industries like healthcare and financial services. Can you elaborate on why these sectors are a priority for CloudScale365?
Patrick Hannon: The financial industry is highly regulated, and that compliance creates complex demands on IT providers. We’ve earned a place on the FinTech Matrix, a designation we’re proud of, as it validates the level of service we offer. Healthcare is another focus for us, particularly due to several acquisitions we made in that space. We understand the unique challenges these industries face and are well-equipped to meet their regulatory and operational needs.
Interviewer: What do you see as the key value propositions CloudScale365 offers to small businesses compared to larger enterprises?
Patrick Hannon: For small businesses, we are essentially a full-service IT department. We act as their virtual CIO, ensuring their environments are secure, backed up, and optimized for efficiency. For larger enterprises, we fill in labor gaps, providing the expertise and staffing they might not have internally, especially when it comes to rolling out new products or navigating IT personnel turnover.
Interviewer: You’ve mentioned CloudScale365’s rapid growth, largely fueled by acquisitions. Can you tell us more about your acquisition strategy?
Patrick Hannon: Our approach to acquisitions is all about finding accretive businesses that complement our existing services. We look at factors like the customer profile, service offering, and most importantly, the culture of the business. If the cultural fit isn’t there, we don’t proceed. A testament to this approach is that we still retain 70% of the original employees from when we started acquiring companies in 2015.
Interviewer: As CEO, what does your role involve on a day-to-day basis, and how are you planning for the future?
Patrick Hannon: As CEO, my primary responsibility is setting the company’s vision and overseeing our sales efforts. I’m also currently transitioning a lot of operational duties to other members of the team, like Greg, following our recent acquisition of Zethernet. Personally, I’m planning to retire in the near future, so I’m focused on ensuring the company is in good hands moving forward.
Interviewer: Where do you see CloudScale365 in five years?
Patrick Hannon: In the next few years, we’re on track to double our revenue. We’re targeting a range of $40 million to $80 million in annual revenue within five years. Our growth will be fueled by both continued acquisitions and the expansion of our service offerings, particularly in cloud services, security, and co-managed IT solutions.
Interviewer: Outside of work, how do you spend your free time?
Patrick Hannon: I’m an avid cyclist, golfer, and fly-fisherman. I also enjoy skiing and I’m a huge Arsenal football fan. I make it a point to attend at least one Arsenal match a year in Europe.
Interviewer: Lastly, what advice would you give to businesses as they plan their IT strategy for the future?
Patrick Hannon: My biggest piece of advice is not to chase the latest shiny technology. We’ve seen a lot of trends—whether it’s EDR or MDR for security or, more recently, AI. While these technologies are important, especially AI, small to medium-sized businesses need to be pragmatic about their adoption. AI is developing rapidly, but it’s not yet accessible or affordable for many businesses at scale. At CloudScale365, we’re focused on the essentials—data retention, data backup, and security—as we believe these will remain critical priorities in the coming years.
Interviewer: Thank you, Patrick. This has been insightful. We appreciate your time and look forward to seeing CloudScale365’s continued success.