Cloud dispatch / CTP joined HPE in September 2017✳Strategy → migration → cost & compliance✳More than 300 enterprise customers reported in 2016✳Cloud dispatch / CTP joined HPE in September 2017✳Strategy → migration → cost & compliance✳More than 300 enterprise customers reported in 2016✳
Company profile / Cloud infrastructure

The Cloud Was Easy to Enter. The Bill Was Harder to Leave.

Cloud Technology Partners taught big companies how to move applications to the cloud, then discovered the real work began when the meter started running. HPE bought that expertise in 2017, even as its customers were moving workloads toward other companies' servers.

Imagine an executive asking for a cloud strategy and receiving the answer, “First, show me the application.” It sounds like a delay. For Cloud Technology Partners, it was the job. The firm helped large companies decide which systems belonged on public cloud, which needed a private environment, and which were better left where they were. That answer required more than an AWS account and a deadline. It required somebody who understood the code, the auditors and, eventually, the bill.

The short version
  • What it sold: cloud strategy, application migration, new software development and managed operations.
  • Who bought it: large enterprises, including regulated firms with complicated existing systems.
  • What changed: cost and compliance became continuing services once migrations exposed the limits of a one-time project.
  • The exit: HPE completed its acquisition on September 15, 2017; the price was not made public.

The map before the move

CTP began in the Boston area, with Chris Greendale as founder and chief executive and Erik Sebesta as co-founder and chief architect. Their proposition was timely but stubbornly practical. The cloud was becoming an enterprise purchase, yet an enterprise is rarely a tidy set of applications waiting to be relocated. Its software arrives with dependencies, security rules, data, owners and habits. The migration date is one line in a much longer ledger.

The company built a Cloud Adoption Program around this disorder. It drew on hundreds of engagements to turn assessment, planning and migration into a repeatable method. CTP also developed PaaSLane, a software product that inspected application code for issues that would complicate a cloud move. It was a useful admission for a consulting firm: some answers should come from examining the thing itself, not from another workshop.

The customers were not shopping for a single cloud brand. CTP worked across AWS, Google Cloud, Microsoft Azure and private environments. Its revenue came from enterprise advisory and implementation engagements, software and ongoing managed work. A public rate card for its historical projects does not appear in the record. The point of the model was to follow a customer from the first architecture discussion into the uncomfortable months after launch.

Cloud Technology Partners team members standing together in a brick-walled office
Eleven people, one brick wall, and a cloud plan that still has to survive Monday morning. A period CTP team photo published by development partner Sednor.

The first thing to fail was certainty

By 2017, CTP was describing two common blockers to scaling AWS inside large organizations: regulatory compliance and cost management. That is a more revealing diagnosis than “the migration failed.” Once a workload moved, someone still had to know whether its controls met policy and whether its spend matched the business case. A cloud bill could grow in a corner of an organization while the original return-on-investment spreadsheet remained safely in a drawer.

CTP's response was Managed Cloud Controls. Its initial services, Continuous Compliance and Continuous Cost Control, put monitoring around the work that a project team could not finish at go-live. The compliance service was described as watching more than 1,000 technical and nontechnical controls. The cost service connected actual cloud spend to application owners and original projections. Those are product claims from the 2017 launch, not a guarantee that every customer saved money. But the design is concrete: make the new environment answerable to the people who approved it.

“Two critical blockers to large scale AWS adoption are regulatory compliance and cost management.”Cloud Technology Partners, 2017

There is a lesson in the order of CTP's products. PaaSLane asked whether an application was ready to move. Managed Cloud Controls asked whether the organization was ready to live with it. The second question lasts longer, which is helpful if you sell services and even more helpful if you are the customer who must pass an audit in six months.

An investor with a server room

By 2016, Rackspace had become both an investor and a commercial partner. Rackspace brought managed cloud operations; CTP brought strategy, design and migration. Its investor presentation said CTP had more than 300 enterprise customers. State Street Bank and Pritzker Group Venture Capital also invested in CTP's Series C, and executives from Rackspace and State Street joined the board. The pairing said something about the addressable problem: operating cloud for large, often regulated organizations demanded both delivery muscle and trust.

300+enterprise customers cited by Rackspace, 2016
2017Managed Cloud Controls launch
15 SepHPE acquisition closed, 2017

Then came the apparently odd buyer. Hewlett Packard Enterprise made its name supplying the infrastructure on which companies ran their own systems. CTP had a strong relationship with AWS, one of the destinations those customers were considering. Buying CTP did not erase that tension. It gave HPE a seat at the decision table before a workload landed anywhere. HPE placed CTP in Pointnext, its services group, and told investors the acquisition would expand cloud consulting. In 2018, HPE said its purchase of Azure specialist RedPixie complemented CTP's AWS strength.

The purchase price for CTP was not disclosed. Confusingly, some current profile data says the acquisition happened in 2018. HPE's annual filing records a September 15, 2017 close. That date matters because this was part of HPE's 2017 effort to become more useful to customers navigating hybrid IT, not a late reaction to a settled market.

What a buyer can borrow

CTP's most portable idea is to treat cloud adoption as an operating change. Start with an application inventory and a decision about placement, rather than a blanket order to move. Test a difficult workload before promising a fleetwide result. Put the cost owner and compliance owner in the same room as the migration team. Make actual spend visible against the original business case. If nobody is accountable for those numbers after launch, the project is unfinished, however impressive the migration chart looks.

That sequence has limits. A small team with a simple application may not need a large consultancy or a custom control suite. A workload tied to hardware, data residency or very stable on-premises economics may not benefit from a public-cloud move. And a compliance dashboard cannot repair a business that has never agreed who can create resources or who must respond to a failed control. CTP's services were most compelling where complexity was real: many applications, many owners, several environments and rules that did not stop applying when the servers changed hands.

The company was acquired, but the question it sold remains current: after the exciting move, who stays to check the meter? Clouds are good at turning infrastructure into a service. They are less inclined to tell you which internal argument about cost, risk and responsibility you postponed to get there.