Logicworks might not be a household name, but since 2012 it has been working with customers to help them move to the cloud and manage their workloads once they get there. By following that approach, the late-stage startup is closing in on $100 million in revenue. Today, it announced a new Cloud Reliability Platform (CRP) designed to help companies migrate to AWS or Azure safely in a compliant way -- and to keep that revenue engine cranking.
CEO Ken Ziegler says that Logicworks has taken a long view to building the business, and today's announcement is the culmination of a lot of work over the years of staying tightly connected to the major cloud platforms.
"We've taken a much longer approach, which is you build a platform from day one where basically you pick which cloud you're going to support and then build really high-quality tooling, telemetry and automation around those platforms. Over time you end up with this really nice high margin recurring revenue engine that becomes an integral part of our customers' long-term success and operations because we're tying in compliance, security and scalability," he said.
As companies move ever faster to the cloud, Logicworks is helping their customers by using a template approach to migrate in a secure way, while remaining in compliance with whatever industry standard is applicable, whether that's HIPPA, FINRA or any other set of rules. Customers can choose the template that applies to their industry, apply whatever customizations are required and then move in a secure and compliant fashion to the cloud.
As the company approaches that $100 million revenue threshold, it has numbers that are solid enough to support an IPO, but Ziegler says that he is content to continue building the company for now and to take advantage of the more generalized growth in the cloud market, which reached $42 billion last quarter.
In fact, Ziegler says that in his conversations with AWS executives they are indicating the bottleneck for customers is getting to the cloud in the first place, and that is the sweet spot of Logicworks -- helping companies migrate to the cloud
"That's really what we built this platform to do, and if we can maintain credibility to really unstick migrations, and then show how they can run successfully, [we can continue to grow]," he said. He adds that because the company has a long-term relationship with the cloud providers, it can also help customers take advantage of the continued innovation happening on these platforms.
"The cloud operators aren't sitting still, so if you want to maintain that innovation curve, which is why you're going to the cloud in the first place, you want to work with someone that's going to make sure that that's included with the long-term success as part of the partnership," he said.