Merger and Acquisition and the Cloud: Integrate and scale with public cloud solutions
Insights 10 minutes read

Merger and Acquisition and the Cloud: Integrate and scale with public cloud solutions

Published on
June 27, 2024

Merger and Acquisition (M&A) activities can help businesses expand their capabilities, access new technologies, and integrate different cloud platforms to provide more comprehensive services. However, M&A transactions and divestments can also come with a number of challenges requiring expertise, communication, coordination, time, and resources. 

Here, we’ll look at how scalable cloud computing can be used to accelerate M&A deal execution to make the end-to-end process more streamlined. We’ll also explore best practices for M&A cloud integrations to optimise the transformation journey.

How cloud helps with M&A

Optimise resource allocation

A public cloud can significantly optimise resource allocation during M&As by providing flexible and cost-effective IT infrastructure. Scalable cloud services facilitate rapid scaling of resources based on demand – ensuring that IT capabilities align with the evolving needs of the organisation. 

The cloud shifts attention to strategic activities that add ROI, as opposed to focusing on operational activities such as hardware maintenance or asset refreshes. Additionally, cloud platforms offer advanced analytics and automation tools that streamline data consolidation and improve decision-making. The agility and efficiency of M&A cloud conversions supports quicker realisation of synergies during the process of bringing companies together. 

Better security

A reputable public cloud service such as Microsoft Azure offers comprehensive security features, robust compliance certifications, and industry-leading data protection protocols that help merging companies meet stringent regulatory requirements and safeguard their data. The Cloud Centre of Excellence (CCoE) will set a security and risk governance framework for the M&A transaction lifestyle and IT integration, and communicate security and risk management objectives to all relevant stakeholders. 

Public cloud providers have dedicated security professionals to ensure that their offering provides the most up-to-date cyber security protection, and they also have preset capabilities to model identity and access management. These security features are all greatly beneficial to the M&A process. 

Increased visibility

One problem that can appear during an M&A is the lack of visibility into the merged systems. This is risky for a number of reasons, the most crucial of which is the possibility of security breaches going undetected. 

To mitigate this risk and gain much-needed visibility, a cloud system provides much more control over all IT environments. Increased visibility is facilitated by centralised monitoring and management tools that enable real-time tracking of resources, applications, and data across the entire cloud environment. These tools include dashboards, analytics, and reporting features that provide detailed insights into system performance, security events, and usage patterns. 

Increased productivity

During an M&A, migrating to a public cloud can increase productivity by streamlining the integration of IT systems and data from the merging entities, reducing the time and complexity associated with consolidating disparate infrastructures. The scalability and flexibility of M&A cloud services allow for rapid deployment of applications and resources, enabling employees to quickly access necessary tools and data without significant delays. 

Additionally, public cloud solutions offer automation and advanced analytics capabilities that can optimise operations, reduce manual tasks, and provide valuable insights – further boosting productivity across the newly combined organisation.

Cost optimisation

Leveraging scalable cloud services can aid in cost optimization by eliminating the need for extensive investments in new physical infrastructure. Most public cloud services provide a pay-as-you-go model, allowing organisations to scale resources up or down based on demand, thereby avoiding over-provisioning and reducing unnecessary expenses. 

Additionally, public clouds often offer cost-effective storage options, efficient data management tools, and automated resource management capabilities that streamline IT operations. By embracing cloud cost reduction strategies, businesses can achieve economies of scale, improve cost predictability, and allocate financial resources more strategically.

M&A cloud integration – best practices

Engage stakeholders early

For a successful and smooth M&A, it’s vital for all stakeholders to realise the benefits of the cloud. To foster consensus, early engagement creates more opportunities for stakeholders to provide input and raise concerns regarding integration challenges, which can be addressed proactively. The goal is for all business units to align over strategic goals – essential both for productivity and morale. 

Early engagement also builds confidence among stakeholders by demonstrating transparency and inclusivity in decision-making processes. This will provide tangible benefits across all phases of the M&A. 

Develop an integration plan

Developing an integration plan is crucial to ensure an efficient transition. This plan will provide a clear roadmap that outlines the steps and timeline for integrating systems, data, and applications – helping to avoid disruptions in business operations.

An integration plan will ensure that potential technical challenges and compatibility issues are identified and addressed proactively, reducing the risk of data loss, security breaches, or downtime. A plan also helps coordinate efforts across different teams and departments, so that resources can be allocated effectively. 

During an M&A, a well-structured plan for moving to a scalable cloud computing service will ensure compliance with regulatory requirements. Ultimately, this will streamline the migration process and accelerate the realisation of synergies. 

Conduct thorough data migration

These steps provide a useful framework for a seamless migration:

  • Perform a comprehensive assessment of the existing data landscapes of both entities to identify all data sources, formats, and dependencies
  • Develop a detailed migration plan that includes data mapping, prioritisation of data sets, and a timeline for each phase of the migration
  • Implement robust data governance and security protocols to ensure data integrity and compliance with regulatory requirements
  • Utilise automated migration tools to streamline the process and minimise errors, while also conducting rigorous testing and validation at each stage to ensure data accuracy and system compatibility
  • Communicate with stakeholders throughout the process to ensure alignment with business objectives 
  • Monitor continuously to address any issues promptly

M&A scaling with cloud – best practices

Leverage cloud scalability features

During mergers and acquisitions, business leaders should leverage cloud scalability features to efficiently integrate IT infrastructures from both entities. By utilising the cloud’s ability to dynamically scale resources up or down based on demand, companies can ensure they have the necessary computing power and storage capacity to handle increased data volumes and application loads without over-provisioning. 

Because scalable cloud services can accommodate future growth and changes, it will be easier to expand operations, launch new products or services, and enter new markets as opportunities arise. Alongside the financial advantage of cloud cost reduction, the flexibility of public clouds can provide multiple benefits during the M&A process.

Continuous monitoring and optimisation

Most public cloud vendors provide tools that allow for fast and insightful information about business operations. Here are some of the benefits these tools can provide:

  • Real-time monitoring of resources and applications
  • Data analysis to provide actionable insights
  • Best-practice evaluations in areas such as cost optimisation, security, fault tolerance, and performance
  • Powerful search, logging and visualisation capabilities

These dashboards and tools can also lead to greater transparency and lower translation execution costs.

Adopt a hybrid cloud strategy

A hybrid cloud is a computing environment that combines on-premises data centres with public cloud services, allowing data and applications to be shared and managed across both platforms. Hybrid cloud set-ups can be a good solution for enterprises that want to leverage the scalability and cost-efficiency of public cloud services while maintaining control over sensitive data and applications in a private cloud environment.

Here are four important things to remember when adopting a hybrid cloud approach:

    1. Implement a customised strategy that can easily flex, to ensure agility and scalability 
    2. Make sure your cloud solution integrates with needs that are specific to your industry
    3. Plan ahead by creating a hybrid cloud roadmap that leads towards a clear goal 
    4. Leverage hybrid cloud cost optimisation services to ensure economic sustainability

While hybrid approaches have the potential to give your business a competitive edge, success is all in the planning, execution, and monitoring. 

Cloud challenges to consider during an M&A event

Incompatible systems

If difficulties arise due to incompatible systems, you should first conduct a thorough assessment to understand the specific differences and challenges presented by the disparate systems. Based on this assessment, the company should develop a comprehensive integration strategy that includes data mapping, middleware solutions, and incremental migration plans to bridge gaps and ensure interoperability. 

Prioritising critical business functions and systems for early integration can help to minimise disruption. Additionally, leveraging scalable and flexible cloud solutions can facilitate smoother transitions by providing adaptable infrastructure that supports various platforms.

Compliance and regulatory challenges

Since M&As often cross geographic and/or legal jurisdictions, ensuring alignment with the various regulations and compliance requirements can be challenging. To mitigate risk during an M&A cloud migration, a detailed plan needs to be created to assure data sovereignty. Rigorous planning is the key to ensuring that all relevant parties understand the compliance requirements, and that your data remains secure throughout the process. 

Data leaks

It’s necessary to take a proactive approach to cyber security during the M&A. As best practice, we recommend performing a full cyber security audit as part of the due diligence phase of the M&A.

Failure to adequately assess your cloud security could result in a data breach in which your systems are targeted by cyber criminals. A data leak can have a multitude of negative consequences including:

  • Damage to your brand and reputation
  • Loss of revenue
  • Fines for compliance failings
  • Lost intellectual property

More information about cyber security can be found in our guide to the most common types of data breaches.

Why migrate with Interactive

Experienced cloud specialists

As a leading cloud service provider, Interactive offers flexible cloud service solutions to meet the needs of your business. We can assist with cloud cost reduction, as well as managing your migration, network, storage, backup, firewall, recovery, and processing. Our experienced team of industry experts will help you get the most out of your cloud service, to give your business every advantage.  

Multi-cloud experts

Interactive is the owner of Australia’s largest private cloud platform, so we know what it takes to choose the right combination of features and capabilities to meet the needs of your business. We can help you select cost-effective scalable cloud services, and help to create a roadmap towards cloud maturity

Built-in cloud security

We have our own 24/7 Cyber Security Operations Centre (CSOC) that can provide experienced advice and up-to-the-minute assistance in the event of a cyber attack. Interactive operates 24/7 cyber security centres, and our highly skilled, local engineers can answer you within 6 seconds for a fast resolution, every time. 

 

Cloud solutions at Interactive

Cloud services

Explore our range of Cloud Services including migration, optimisation, management, and security. With our customer-centric approach, we’ll work alongside you to support your organisation and help you get the most out of your public cloud transformation. 

We are a proud Microsoft Solutions Partner Specialist, with a highly credentialed team ready to guide you on your Azure Cloud Services journey. Interactive can assist with setting up the necessary CCoE functions, framework, and guardrails, ensuring the transition to Microsoft Azure is cost-effective. We can also help to expand your technological reach and get the most out of your public cloud transformation.

Interactive Anywhere

In addition to our cloud services, Interactive Anywhere provides customised comprehensive IT solutions to meet the requirements of your organisation. Interactive Anywhere covers all your IT needs – from a smooth transition to the cloud to the rapid mitigation of cyber risks.

Contact us today to discover how Interactive can assist with IT infrastructure, networks, end user support, cyber security and more.

Featured insights

Insights 8 minutes read
Learn how consolidating IT resources can help improve business performance.
Insights 6 minutes read
Want to migrate VMware to the cloud? Discover our guide to help you start and ensure success.
Insights 6 minutes read
Learn our key tips to assess which applications are most important to move first during your cloud migration.

Get in touch with our team

FORM HEADINF
Search by industry
  • All
  • Automotive and Logistics
  • Consumer Packaged Goods
  • Corporate
  • Financial Services
  • FMCG
  • Government
  • Healthcare
  • IT, Data and Software
  • Manufacturing
  • Media and Entertainment
  • Philanthropy and Volunteer
  • Real Estate
  • Retail
  • Superannuation
  • Travel