The Great Cloud Grab: Why Enterprise Acquisitions of Cloud Management Platforms Leave SMBs Behind
The next wave of cloud magement options for SMBs
The cloud management space has become a battleground for enterprise tech giants. In the last few years, we've seen a wave of acquisitions as large enterprises scoop up small, innovative cloud management platforms (CMPs) to expand their service offerings and reinforce their competitive edge. These acquisitions make perfect sense from a business standpoint—why spend years building a solution when you can simply buy a best-in-class product with an existing customer base?
For enterprise customers, this is a win. They now benefit from deeper integrations, improved automation, and more robust security solutions that align with large-scale operational needs. But what about the small and medium-sized businesses (SMBs) that helped these platforms rise to success in the first place? They’re the ones getting left behind in this gold rush, relegated to the C-list of customers who no longer fit the "ideal" profile.
The Hidden Cost of Enterprise Takeovers
For SMBs, these acquisitions often mean increased costs, loss of tailored features, and degraded customer support. Once an agile and affordable solution, the newly acquired CMP now carries an “enterprise-grade” price tag, bundled with services the average SMB neither wants nor needs. Support that was once a Slack message away is now buried behind layers of enterprise-tier bureaucracy. What was once a manageable monthly fee now becomes part of a five-figure contract negotiation.
This shift is not just frustrating—it’s forcing SMBs to either stretch their budgets beyond what’s reasonable or start over from scratch. The worst part? They’re losing access to the very tools that enabled them to compete against larger companies in the first place.
Acquisitions of CMPs in Recent Years
To illustrate my point, here’s a (far from exhaustive) list of acquisitions in recent years that have made me double take. My list covers U.S.-based enterprises that have acquired small(ish) cloud management platforms or cloud-focused providers to enhance their service offerings and expand their technological capabilities.These acquisitions cover a variety of areas, but the common denominator is the grabbing up of companies that specialize in serving cloud customers. Notable acquisitions:
Hewlett Packard (HPE) acquires Morpheus Data (2024): A pioneer in hybrid cloud management and platform operations software, Morpheus was acquired by HPE to enhance the hybrid operations capabilities of HPE GreenLake cloud services.
ConnectWise acquires SkyKick (2024): ConnectWise, a platform for Managed IT Service Providers (MSPs) expanded its cloud management solutions by acquiring SkyKick, a company specializing in cloud backup and management software.
IBM acquires Apptio (2023), which acquired Cloudability (2019): In 2019, Apptio, a company specializing in technology business management solutions, acquired Cloudability, a firm that manages cloud spending. This acquisition aimed to provide businesses with better insights into their cloud expenditures and optimize their cloud investments.
Cisco Acquires Splunk (2023): Cisco Systems acquired cybersecurity firm Splunk for $28 billion. Splunk specializes in data analysis and security solutions, and this acquisition is expected to enhance Cisco's capabilities in managing and securing cloud environments.
NetApp acquires Spot.io (2020), which acquired CloudCheckr (2017): NetApp acquired Spot.io, a company known for its cloud automation and optimization solutions. This acquisition was designed to enhance NetApp's offerings in cloud cost management and optimization.
Flexera acquires Spot by NetApp (2025):
Read about how much NetApp lost in this deal >>Turbonomic acquires ParkMyCloud (2018): Turbonomic acquired ParkMyCloud, one of the O-G cloud management platforms that helped enterprises automatically identify and eliminate wasted cloud spend. This acquisition aimed to strengthen Turbonomic's capabilities in cloud cost management.
Dell acquires Mist.io (2022): Mist.io, an open-source multicloud management platform, was acquired by Dell as part of Dell's strategy to enhance its cloud management solutions.
Qualys acquires TotalCloud (2021): TotalCloud, a cloud management and automation platform, was acquired to bolster Qualys' cloud security offerings.
Other notable (and not necessarily cloud platform-related) acquisitions I’ve been watching include CDW’s purchase of Mission Cloud, an AWS cloud consulting partner, and of course the big one, Broadcom’s acquisition of VMware in 2023.
These acquisitions reflect a strategic trend among U.S.-based enterprises to enhance their cloud management portfolios through the integration of specialized platforms.
The Next Wave of Cloud Management Platforms
Fortunately, the market isn’t standing still. As quickly as enterprise behemoths swallow up smaller cloud management platforms, new contenders emerge, purpose-built for the SMB market. These next-generation CMPs are cloud-native, affordable, and focused on high-touch customer service. They recognize the gap left behind by acquisitions and are stepping in to fill it with transparent pricing, no long-term contracts, and services designed specifically for smaller teams managing complex cloud environments.
However, navigating this new wave of platforms is no easy feat for SMBs. With dozens of vendors offering overlapping functionality—each claiming to be the "best" at cost optimization, automation, or governance—SMBs face a challenge: how do they cut through the noise and find the right provider?
Breaking Free from the Enterprise Orbit
For SMBs, the key is to resist the temptation of sticking with a now-inflated enterprise contract simply because it’s familiar. Instead, it’s time to explore alternatives:
Evaluate newer, SMB-focused CMPs – Companies like Kalos by Stratus10, MontyCloud, CloudBolt, and Cloudkeeper are rising stars offering cost-efficient solutions designed for smaller-scale operations.
Beware of feature bloat – Enterprise-acquired platforms often layer in unnecessary complexity. Make sure you’re only paying for what you actually need and use.
Consolidate strategically – Look for a platform that does more than one thing. Whether that’s multicloud, Kubernetes, security compliance, or other, it’s likely you’ll find a platform to cover multiple bases.
Prioritize customer support – A strong support team that understands SMB challenges is invaluable. Choose a provider with a reputation for high-touch service.
Embrace cloud-native simplicity – Many new CMPs are designed for a fully cloud-native world without excessive manual configurations. Enterprise tools typically include on-prem, multicloud, and third-party integrations, which you may not need.
Avoid long-term contracts – Flexibility is key. SMBs should seek out providers offering month-to-month pricing with no rigid, enterprise-style lock-ins.
The cloud is supposed to be a democratizing force, leveling the playing field between startups and Fortune 500s. But if SMBs allow themselves to be locked in enterprise tools, they risk losing the agility that makes them competitive. The new wave of cloud management platforms offers an opportunity to take back control, cut costs, and regain flexibility.
The bottom line?
SMBs don’t have to accept the results of enterprise acquisitions. While researching and switching to new tools is time-consuming and entails some risk, there’s an entire market of innovative, cloud-native tools waiting to help them thrive. Now’s the time to explore, evaluate, and embrace the future of cloud management—on their own terms.
Thanks for reading!