Lancom Technology - Comprehensive Analysis Report

Summary

Lancom Technology, established in 1988 and headquartered in Auckland, New Zealand, is a cloud-first Managed Services Provider (MSP) and custom software developer with a significant presence in Australia and recent expansion into the United States. Its core mission is to empower businesses through talent, curiosity, and continuous learning, delivering tailored technology solutions that drive growth and efficiency. By enabling clients to maximize their leverage of technology, Lancom plays a crucial role in digital transformation across various sectors through advanced cloud infrastructure, software development, and managed services. The company's significance in the industry is defined by its expertise in hyperscale cloud technologies, generative AI services, and its strategic positioning as a trusted advisor committed to secure operations through ISO 27001 certification.

1. Strategic Focus & Objectives

Lancom Technology’s strategic focus is on being a cloud-first provider of technology, software development, and cloud computing services.

Core Objectives

The main business objectives include helping businesses succeed by optimizing their technology investments and enabling them to achieve more with less. This entails:

Proactive management and enhancement of IT infrastructure to reduce downtime and boost efficiency.

Designing, delivering, and optimizing scalable, secure, and cost-efficient cloud environments.

Building custom software solutions and modernizing outdated systems to eliminate legacy limitations.

Driving business success through strategic AI adoption, automating repetitive tasks, and enhancing decision-making.

Specialization Areas

Lancom Technology's key areas of expertise and unique value propositions include:

Managed Services: Providing proactively managed and enhanced IT infrastructure, expert monitoring, and maintenance to reduce downtime and boost efficiency, allowing clients to focus on core business objectives.

Cloud Computing: Designing, delivering, and optimizing scalable, secure, and cost-efficient cloud environments utilizing hyperscale cloud providers such as Amazon Web Services (AWS) and Microsoft Azure.

Software Development/Application Modernization: Building precise custom software solutions, streamlining processes, enhancing efficiency with B2B software development, and modernizing outdated systems.

Generative AI Services: Helping businesses drive success through strategic AI adoption, eliminating repetitive tasks, enhancing decision-making, and unlocking transformative opportunities, utilizing an ontology-driven approach for data structuring.

Business Process Automation (BPA): Automating repetitive business processes to streamline operations, reduce costs, enhance efficiency, and empower employees.

Product Support: Offering outsourced SaaS product support, enabling companies to focus on core development and strategy while maintaining customer satisfaction.

Target Markets

The company primarily targets businesses with $30M+ revenue and 150+ staff, particularly those adopting digital-first and cloud-first approaches. They serve various industries including financial services, healthcare, logistics and distribution, retail, ISV/SaaS, and professional services.

2. Financial Overview

Funding History

Lancom Technology was acquired by Evergreen Services Group in late 2023. This acquisition marked Evergreen's first expansion into the Australia and New Zealand Managed Service Provider (MSP) technology space and aims to fuel further growth for Lancom. Evergreen is backed by capital from San Francisco-based private equity firm Alpine Investors. Growjo estimates Lancom Technology's annual revenue to be $11.6 million.

3. Product Pipeline

Lancom Technology's pipeline focuses on continuous development and enhancement of its service offerings:

Expansion of Generative AI Services: Further building organizational AI capability with an emphasis on ontology-driven approaches for data structuring to deliver practical AI tools and enhance decision-making.

Cloud Cost Optimization Services (FinOps): Enhancing services through partnerships like Vantage to provide real-time AWS cost visibility, automated optimization recommendations, and improved financial operations and governance for customers across Australia, New Zealand, and the United States.

Application Modernization: Continued efforts to transform legacy systems into agile, cloud-native solutions, focusing on improved efficiency, reduced maintenance, and enhanced security and governance.

Partnerships and Platform Integrations: Continuously integrating and optimizing solutions from strategic partners like AWS and Microsoft to unlock new capabilities and accelerate digital transformation for clients.

Adoption of AI solutions in Managed Services: Leveraging solutions like Thread to streamline managed services delivery and drive innovation.

4. Technology & Innovation

Lancom Technology differentiates itself through deep expertise in hyperscale cloud technologies and advanced partnerships.

Technology Stack

Core Platforms and Technologies: Specializes in Amazon Web Services, Citrix, and Microsoft technologies. Proficient across leading cloud platforms as an Advanced AWS Consulting Partner and a Microsoft Solutions Partner with multiple designations.

Proprietary Developments: Has a history of innovation, including the global export of its sister company DeskDirector's SaaS solutions, which serve over a million end-users.

Scientific Methodologies: Utilizes an ontology-driven approach to structure complex data for smarter insights and the delivery of practical AI-powered tools in its Generative AI capabilities.

Technical Capabilities:

AWS Competencies: The first in New Zealand to achieve AWS Software as a Service (SaaS) Competency status, and one of only 26 AWS partners globally to hold this. They also hold multiple other AWS Certifications.

Microsoft Solutions Partner Designations: Achieved Microsoft Solutions Partner status for Digital & App Innovation (Azure), Infrastructure (Azure), Security, and Modern Workplace.

Information Security Certification: Holds ISO 27001 certification, underscoring its commitment to secure operations and its role as a trusted advisor in Information Security.

5. Leadership & Management

Executive Team

Priscila Bernardes (CEO): Appointed CEO in late 2023, succeeding Waruna Kirimetiyawa. Bernardes has a varied background in sales, marketing, customer success, and professional services, playing an instrumental role in shaping Lancom Technology's vision and performance. She joined Lancom in 2015 as Customer Experience Manager.

Waruna Kirimetiyawa (Lancom Group Managing Director and ANZ CEO for Lyra Technology Group): Former CEO of Lancom Technology, he transitioned to this new role following Evergreen Services Group's acquisition of Lancom Technology. He has invested his entire career into Lancom Technology and has overseen significant growth and acquisitions.

Toni Southon (Chief Financial Officer): Appointed as the new CFO in 2023. She is a chartered accountant with over 25 years of strategic financial management experience across multiple sectors, providing financial direction and governance.

Jahan Kahusi (Chief Revenue Officer): Leads Lancom Technology's growth in the United States, focusing on bridging the gap between technical complexity and business value. He has a strong background in building high-performing go-to-market teams in the cloud services space.

Ben Walton (Chief Customer Officer): Heads the customer strategy, bringing over 30 years of IT industry experience. He develops technology roadmaps and aligns IT strategies with business goals.

Gregor Blaj (Technical Director): Provides technical direction, supporting the delivery of cost-effective solutions aligned with business objectives and architectural best practices. He is a certified expert in both AWS and Microsoft cloud technologies.

Recent Leadership Changes

Priscila Bernardes was appointed CEO in late 2023, succeeding Waruna Kirimetiyawa, who transitioned to Lancom Group Managing Director and ANZ CEO for Lyra Technology Group following the acquisition by Evergreen Services Group. Toni Southon was appointed CFO in 2023.

6. Talent and Growth Indicators

Hiring Trends and Workforce

Lancom Technology has approximately 80 employees and grew its employee count by 7% last year. The company is actively recruiting for various roles, indicating a growth trajectory.

Key roles being recruited include:

Engineering Pod Leader (Auckland, NZ and Philippines)

People Coordinator (Auckland, NZ)

Service Delivery Manager (Auckland, NZ)

Senior Developer (Mt Eden, Auckland, NZ)

Systems Engineer - Tier 2

Company Growth Trajectory Indicators

The recent acquisition by Evergreen Services Group and subsequent expansion into the US market signify a strong growth trajectory. The company emphasizes continuous learning and talent development.

Employee sentiment and culture insights

Lancom Technology fosters a culture based on trust, freedom, and support, where clients trust them to deliver results, and employees are given the freedom to discover solutions and shape their careers. Values include talent, continuous learning, curiosity, humility, perseverance, and being creators of innovative solutions. Employees appreciate the diversity and opportunities to learn new things and solve customer problems.

Company size and expansion metrics

While Growjo estimates 80 employees, PitchBook reports 65 total employees. The company has successfully expanded its presence from Auckland, New Zealand, to Australia (with a Melbourne office opened in August 2020) and recently into the United States. The US operations benefit from the extensive reach of its Chicago-headquartered parent, Lyra Technology Group.

7. Social Media Presence and Engagement

Lancom Technology maintains a digital footprint across platforms such as X and Facebook. Their online content often revolves around cloud computing, AI, application modernization, and IT security, reflecting their strategic focus and expertise.

8. Recognition and Awards

Industry Recognition

AWS Cloud Innovation Healthcare Industry Award: Winner for successfully delivering a major application modernization project for Geelong's Barwon Health.

Microsoft Partner Awards: Shortlisted for Microsoft New Zealand's 2020 Partner Awards in the Azure Migrate Award category.

AWS SaaS Competency: The first in New Zealand to achieve AWS Software as a Service (SaaS) Competency status.

Microsoft Solutions Partner Status: Achieved for Digital & App Innovation (Azure), Infrastructure (Azure), Security, and Modern Workplace.

9. Competitive Analysis

Major Competitors

Lancom Technology operates in a competitive IT services market. Its top competitors include:

Happiest Minds

Endava

Accenture

Deloitte Consulting

IBM Consulting

InfoObjects

These companies often offer a similar range of IT consulting, managed services, and cloud solutions, especially in the AWS and Microsoft ecosystems. Given Lancom's smaller size compared to global giants like Cisco and Juniper, it has an opportunity to differentiate through personalized, flexible service offerings that emphasize agility and customer-centric solutions.

10. Market Analysis

Market Overview

The managed services market in the United States alone is projected to reach approximately US$69.55 billion this year, with a compound annual growth rate (CAGR) of 10.82%, reaching an estimated US$116.25 billion by 2030. This indicates a robust and growing market for Lancom Technology's offerings.

Growth Potential

Lancom Technology is well-positioned for growth by leveraging its expertise in digital transformation, cybersecurity, and hybrid IT environments. The increasing demand for managed IT services, especially for businesses adopting digital-first and cloud-first approaches, provides significant opportunities.

Key Market Trends

Digital Transformation: Businesses across sectors are increasingly relying on digital transformation initiatives, driving demand for cloud infrastructure, software development, and managed services.

Cloud-First Adoption: The shift towards cloud-first strategies, particularly with hyperscale providers like AWS and Azure, continues to be a dominant trend.

Generative AI Integration: The strategic adoption of generative AI services is emerging as a critical component for enhancing decision-making and automating processes.

FinOps and Cloud Cost Optimization: With increasing cloud spending, services focused on cloud cost visibility, optimization, and financial governance are becoming essential.

Cybersecurity Needs: The ongoing rise in cyber threats continues to drive demand for secure IT operations and trusted advisors in information security.

11. Strategic Partnerships

Evergreen Services Group: Acquired Lancom Technology in late 2023, marking Evergreen's first expansion into the Australia and New Zealand MSP technology space and providing Lancom with access to Evergreen's global network and resources.

Amazon Web Services (AWS): Lancom Technology is an Advanced AWS Consulting Partner with multiple AWS Certifications and the first in New Zealand to achieve AWS SaaS Competency status.

Microsoft: Lancom Technology is a Microsoft Solutions Partner with designations for Digital & App Innovation (Azure), Infrastructure (Azure), Security, and Modern Workplace.

Vantage: Partnered to enhance AWS cost visibility and financial operations for Lancom's customers across Australia, New Zealand, and the United States, offering real-time AWS cost visibility and automated optimization recommendations.

Thread: Partnered to optimize AWS spend and accelerate AI innovation, with Lancom committing to adopting Thread's AI solutions across its own MSP business.

12. Operational Insights

Current Market Position: Lancom Technology is positioned as a cloud-first Managed Services Provider and custom software developer with a strong presence in ANZ and growing presence in the USA.

Competitive Advantages:

Deep expertise in hyperscale cloud technologies (AWS, Azure) and multiple advanced partner certifications.

Specialized offerings in generative AI services and FinOps.

ISO 27001 certification for information security.

A history of innovation, including proprietary software solutions like DeskDirector.

Operational Strengths:

Over three decades of experience in managed IT services, cloud infrastructure solutions, Business Process Automation services, and custom software development.

Strong focus on customer success and personalized support.

Robust internal talent development and continuous learning culture.

Areas for Improvement:

Continued efforts to differentiate in a highly competitive market against larger, established global IT consulting firms.

Effective integration and leverage of Evergreen Services Group's broader network.

13. Future Outlook

Strategic Roadmap

Growth Strategies: Focus on expanding its generative AI services, cloud cost optimization (FinOps), and application modernization offerings to meet evolving market demands.

Expansion Opportunities: Further solidify its presence and client base in the newly expanded United States market, leveraging its existing partnerships and expertise.

Planned Initiatives: Continue to integrate and optimize solutions from strategic partners like AWS and Microsoft, while exploring new partnerships that enhance its service portfolio.

Future Challenges and Mitigation Strategies: Navigate the competitive landscape by emphasizing its unique expertise, customer-centric approach, and continuous innovation in emerging technologies like AI. Mitigate risks associated with rapid technological change by maintaining a strong focus on continuous learning and talent development.