I Cannot Keep Up. CBEY Maxes Cloud

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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

I Cannot Keep Up. CBEY Maxes Cloud

Cbeyond, Inc. (NASDAQ: CBEY), a leading provider of IT and communications services to 55,000 small businesses across the country, today announced that it has acquired the assets of privately held MaximumASP and its affiliated companies, as well as the outstanding stock of privately held Aretta Communications. MaximumASP provides cloud services such as managed virtual servers and dedicated servers, and Aretta Communications provides cloud services such as cloud PBXs (private branch exchange) and SIP (Session Internet Protocol) trunking. Both companies target small- and medium-sized businesses throughout the U.S.

The combined transaction value is approximately $40 million, payable in cash. The aggregate fiscal 2010 revenue of the two acquired companies is expected to be approximately $12 million.

MaximumASP is in Louisville (I guess Smoothstone didn't want them :). It was founded in 2000. Notice the ASP in the name. Application Service Provider - the pre-cursor to Cloud Platform. Jamcracker and Salesforce were ASP's when they rolled out in the early 2000's, hitting up ISPCON with the pitch that software for rent would replace buying software. It took about 8 years and the deployment of a lot of broadband systems coupled with inexpensive smartphones, 3G, netbooks, and cheap computers - and we have this marketing buzz called Cloud.

Of course, Cbeyond already offers apps to its 55K SMB's. This buy is so it can offer even more.

MaximumASP is a Juniper and Foundry shop, while Cbeyond is Cisco powered. MaximumASP is a Microsoft Gold shop, which powers those Dell servers used for shared hosting solutions, virtual private servers and dedicated servers. Managed services that MaxASP offers are hardware load balancing, private firewalls, security scanning, SQL administrative assistance and performance monitoring. It should be a good fit.

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