Cloud ISVs

BeyondID secures $9M in series A funding from Tercera

Tercera’s Investment Spotlights the Market Opportunity for BeyondID’s Identity and Cybersecurity Services, and the Growth for Services in the Third Wave of Cloud Computing


San Francisco, CA – February 8, 2021 – BeyondID, a leading System Integrator (SI) and Managed Service Provider (MSP) for cybersecurity and cloud services, today announced it closed a Series A funding round of $9 million from Tercera. The financing was provided by Tercera, an investment and advisory company specializing in the $460B cloud professional services market.

BeyondID helps companies acquire, deploy and manage best-of-breed cybersecurity and cloud services to become more secure, agile and prepared for the future. The company is a Platinum Services partner for Okta, and specializes in Identity and Access Management, Secure App Modernization, Zero Trust Security, Cloud Migration and Integration Services.

“We are thrilled to partner with Tercera to expand our footprint in the Okta ecosystem and broaden our identity and cybersecurity offerings,” said Arun Shrestha, CEO and co-founder of BeyondID. “Tercera’s investment will help us meet the growing demand organizations have for more secure access to their critical data and higher performing cloud identity solutions.”

BeyondID has been a top partner for Okta, the leading identity platform in the enterprise, for nearly three years. It has earned Okta’s Platinum partnership for consistently delivering joint customer successes and for building one of the largest teams of Okta certified experts to solve complex use cases.

“The BeyondID team has been an invaluable part of our partner ecosystem for many years, working with us on some of our largest customers,” said Frederic Kerrest, Executive Vice Chairman, Chief Operating Officer, and co-founder of Okta. “They’ve played a vital role in helping our customers solve their most complex security and cloud computing challenges, and we’re excited to see BeyondID continue to meet the needs of our customers and grow with us.”

“Tercera is on a mission to identify and empower people and businesses who will lead the cloud’s Third Wave, and we couldn’t be more excited to have BeyondID as our first portfolio partner,” said Chris Barbin, CEO and founder of Tercera. “BeyondID exemplifies the kind of company that customers want to work with in this new wave – agile, focused, growth minded and customer-centric. A company with the specialized skills, technology and services to meet the evolving security needs and demands of today’s businesses and their remote workforce.”

BeyondID has served hundreds of enterprises that include ATN International, Bain Capital, Biogen, Discount Tire, FedEx, Gundersen Health Systems, Johnson Financial Group and Major League Baseball.

“ATN relied on BeyondID’s expertise to deploy our Identity and Access Management solution from Okta, on time and on budget,” said Benjamin Doyle, vice president of Information Technology at ATN International. “As a result of our successful engagement, we’ve expanded our relationship to help with our Zero Trust strategy. I’m excited to work with BeyondID in this incredibly important aspect of our business.”

For more information about BeyondID, please visit To learn more about Tercera, visit


About BeyondID
BeyondID is a leading provider of managed identity services to help companies acquire, deploy and manage their cybersecurity and cloud service needs. BeyondID enables organizations to streamline their adoption process and ensure that their implementations are secure, agile and future proof. A few of the customers that trust BeyondID to keep their organizations secure include FedEx, ATN International, Bain Capital, Biogen, Discount Tire, Gundersen Health Systems, Johnson Financial Group and Major League Baseball.


Tercera is a new kind of investment and advisory firm founded to accelerate the growth of people-centric businesses. Specializing in the $460B cloud professional services market, the Tercera team is composed of invested operators who know first-hand what it takes to build and scale a successful cloud services business. Tercera (Spanish for ‘third’) is on a mission to identify the people and partners who will lead the next wave of cloud computing – the Third Wave – and provide them with the capital, counsel and connections they need to scale faster and take an outsized share of the market.

Tercera launches to invest in people, not products

Tercera Looks to Accelerate Technology Professional Services Businesses Specializing in the Third Wave of Cloud Computing

EVERYWHERE – Jan. 28, 2021 – Tercera, a new growth-focused investment and advisory firm specializing in technology professional services, launched today to accelerate consultancies and managed service providers in the $460 billion cloud services space. Tercera will put $225 million in equity capital to work building the next generation of cloud leaders, focusing on services firms that specialize in analytics, automation, data, security, enablement and management of cloud technology.

The company, which is led by a team of seasoned investors and advisors who are deeply ingrained in professional services, is on a mission to empower the people and businesses who make technology work. Spanish for Third, Tercera provides those leading the cloud’s Third Wave with the capital, counsel and connections they need to scale faster, do more and achieve outsized outcomes in today’s digital age.

CEO Chris Barbin founded Tercera based on his experiences as the co-founder and CEO of Appirio and his recent work as a Venture Partner at GGV Capital. Appirio, a pioneer in cloud services, was among the first enterprise services partners of Salesforce, Google, Workday and AWS. Barbin led Appirio to be one of the largest cloud consultancies before it was acquired in 2016 for $500 million. The Tercera team is seeking to help other services companies achieve similar success in a market segment that has been historically neglected by other investment firms.

“We believe the professional services space has been underserved by investors for too long, especially as it becomes clear just how important these partners are to customer adoption and market growth,” said Chris Barbin, founder and CEO of Tercera. “Cloud professional services is already a massive market opportunity, growing more than 20 percent year over year. With the pandemic driving more digital connections with customers, partners and employees, and enterprise cloud adoption happening faster than expected, we believe this market is poised for significant growth over the next few years.”

“Businesses rely on cloud computing like never before and it underpins so much of the innovation happening in technology, so it’s not surprising cloud professional services are booming on G2,” said Godard Abel, founder & CEO of G2, the world’s largest B2B tech marketplace. “Businesses are in dire need of systems integrators and managed service providers who can help them manage their increasingly large and complex cloud deployments, and yet the capital flowing into this space has significantly lagged investment in the technologies themselves. Tercera fills a gaping hole in this area, and we’ll be closely watching the firm’s portfolio in the coming years.”

Trilantic North America, a private equity firm that manages aggregate capital commitments of $9.7 billion, partnered with Chris to form Tercera, joined by a network of individual investors aligned with Tercera’s people-first vision. Tercera looks to partner with services firms that are founder-led, growth-focused and cloud-driven.

Tercera typically takes a minority stake in companies, investing between $5 million to $20 million of capital, selectively partnering with other firms and strategic investors as businesses scale. However, the company will provide more than just growth capital. It is also building out a services-oriented Advisor Network that will provide practical and diverse guidance and support to founders.

“Capital is only one component to growth,” continued Barbin. “Experienced guidance and a support network play an equal role in helping founders and teams scale faster and more gracefully than they could on their own. The Tercera Advisors are services professionals who have built, bought and sold services organizations, or run critical functions in services businesses. They bring the pattern recognition, diversity and playbooks that growth companies need.”

Useful Resources
Definition and players in the cloud’s Third Wave
Read Tercera’s people-first manifesto
Connect with Tercera on LinkedIn
Follow Tercera on Twitter at @TerceraCapital
Follow Tercera’s blog for news, trends and advice in cloud services

About Tercera
Tercera is an investment and advisory firm founded to accelerate the growth of people-centric businesses. Specializing in the $460 billion cloud professional services market, the Tercera team is composed of invested operators who know first-hand what it takes to build and scale a successful cloud services business. Tercera (Spanish for ‘third’) is on a mission to identify the people and partners who will lead the next wave of cloud computing – the Third Wave – and provide them with the capital, counsel and connections they need to scale faster and take an outsized share of the market. For more information, visit:

Looking for a new breed of cloud-driven professional services firms

While Tercera’s mission centers on empowering the people and businesses that make technology work, our investment thesis is a bit more focused (we believe strongly in having focus). More specifically, we invest in professional services firms that are defining and driving the next wave of cloud computing. We call this next wave, the Third Wave, and it’s why we named the firm Tercera (Spanish for third).

We believe the Third Wave is the biggest wave yet now that cloud technology is no longer the new kid on the block. In the last 20 years, cloud computing has fundamentally changed the way we do nearly everything, and the days of arguing whether enterprises are ready for the cloud or which cloud is better are long behind us.

Since the 2000s, when the First Wave hit, companies have been wading into the cloud in varying degrees. That first wave, driven largely by the bust and 9/11, was mainly focused on SaaS applications, department-centric apps that were focused on improving productivity. Think Salesforce for sales teams, ServiceNow for service teams, Workday for HR teams, and Concur for finance teams. You get the picture.

During the next decade the cloud’s Second Wave formed, fueled at least partly by the 2008 recession. In this wave, cloud platforms took root in the enterprise. Productivity was still important, but with businesses struggling, profitability and performance became more important. In this wave, we saw the rise of Amazon Web Services, Microsoft Azure, and Google Cloud, while First Wave software vendors acquired and developed their own platforms to expand their foothold in the enterprise.

We’re now in the Third Wave, which like previous waves builds on those earlier waves. Productivity, profitability and performance are all driving forces for cloud adoption, but now it’s also about creating connections and optimizing existing processes in an increasingly digital world. Companies of every size that are no longer new to the cloud are finding new ways to create their own unique, customer-centric digital experiences using hundreds of cloud building blocks. And they need help.

Digital experiences aren’t created with the snap of a finger. They require people. People who have the insight, skills and proven knowledge to design, develop, implement, test, manage and evolve these experiences, and those people are not easy to find. It’s one of the reasons why we’re already seeing an influx of capital investment in training programs and people-based businesses, and it’s why we believe the Third Wave is going to be huge for professional services.


The Opportunity for Cloud Professional Services

The cloud professional services category is already a $460B market growing north of 20% YoY. Nearly 7500 systems integrators already call this category home. And with 34% of companies planning to accelerate their cloud migration plans post pandemic (BCG) and enterprises speeding up their digital business initiatives by three to six years, we believe those numbers are poised to grow — opening up a huge opportunity for new software vendors and their partners.

The software vendors that led the first two waves of the cloud – companies like Salesforce, ServiceNow, Amazon, Microsoft and Google – will continue to play a big role in this Third Wave. One only has to look at the amount of M&A activity among these firms to see that.

However, there is a new set of software providers experiencing huge growth in this next wave. Vendors like Okta, Twilio, HashiCorp and Snowflake(just to name a few) are giving enterprises the tools they need to manage their increasingly complex hybrid-cloud environments, to fortify their security position, and to take advantage of the innovation happening in DevOps, AI and RPA (just to name a few). And these vendors have just begun to build out their partner ecosystems.

Together with our capital partner Trilantic, Tercera researched 30 of these Third Wave vendors and discovered that while Salesforce, Amazon, Microsoft, and Google all have thousands of service providers in their ecosystems, many of the emerging vendors have fewer than 300 partners. Until recently, many of them have been able to rely on a bottom-up adoption scheme, which works to a point. But in order to embed cloud systems into an enterprise, you need people who can handle everything from the integration and implementation to the training and ongoing maintenance.

It’s here where opportunity lies. Especially for the cloud-driven professional services firms that can bring the technical chops, delivery models and outcomes that these new vendors need from partners.

Just as Salesforce looked to the first generation of cloud-driven services firms — that delivered faster results, had more agile processes, and teams with specialized skills that the Global Systems Integrators didn’t yet have — this new generation of vendors will demand a new breed of partner.

These are the partners we are looking to identify, to partner with and to empower. If you believe your firm is part of this new breed, hit us up here.

Prepare for a flood in 2021…of capital and M&A in professional services

In a year that started out like this one, with a global pandemic increasing in strength and riots at the U.S. Capitol (and we’re only on Day 12), it seems only natural to start my first blog of the year with a reference to a flood. Luckily, what I’m talking about is a surge of a different kind.

We believe 2021 may finally be the year professional services (especially in the cloud space) gets its due from the investment community and strategic acquirers. Professional services firms in the cloud space are being acquired at a rate we haven’t seen since the early days, despite the efforts of many companies to conserve their cash reserves in a down economy. We believe this is just the beginning of a flood of capital investment in people and people-based businesses, especially those that have the expertise for what’s to come.

Here’s why.


The Cloud Just Got More Important

The year 2020 highlighted many things for business leaders — the value of empathetic leadership, the importance of diversity, the delicate balance of real-time inventory, and that remote work is possible and even preferable. It also proved to business leaders the real value of their cloud computing investments.

When COVID-19 reached pandemic status in March and the world closed up shop, nearly everything moved online — meetings, commerce, learning, entertainment, banking, events, dining “out”, socializing, even tourism. With little to no notice, millions of employees were sent home with just their laptops. More than 9 months later, most of these employees remain working from home (possibly for good), yet work continues to get done. Cloud-powered tools and systems like Zoom, Slack, Okta, Box, Twilio, Google Docs, Microsoft Teams, Salesforce, ServiceNow (and hundreds of other apps) have kept employees productive, customers engaged and the economy running.


2020 proved to business leaders the real value of their cloud computing investments.


COVID flipped a switch when it comes to how work and business gets done, and that light is going to stay on and increase in intensity over the next few years. The term digital transformation is so overused I hate to even put it here, but 2020 highlighted that fact that businesses needed to rethink and redesign a good number of their processes and do it fast. Some businesses adapted quickly and some didn’t, but even those who reacted quickly need to sustain, fortify and expand those efforts. To systematize and optimize the new processes they put in place. And that takes more than technology. It takes people.


Cloud Success = Professional Services

Redesigning systems and processes, especially in complex enterprise environments, doesn’t happen overnight and it’s not easy. Companies need strategic thinking, specialized skills and domain expertise, and unfortunately the people who have this expertise are becoming harder and nearly impossible to keep.

The IT skills gap isn’t a new problem but COVID has exacerbated it. The cloud providers get this. It’s why Amazon recently announced an ambitious plan to train 29 million people to work in cloud computing by 2025. It’s the reason Salesforce invests millions in its Trailhead learning platform every year, and continues to introduce workforce development programs as a big part of its corporate strategy.


The IT skills gap isn’t a new problem but COVID has exacerbated it…It’s also why major professional services firms continue to grow in a down economy.


It’s also why major professional services firms continue to grow in a down economy. Accenture’s Q1 FY21 results were up 4%, with “strong double digit” growth in cloud services. Annual FY2020 revenue for Deloitte’s Consulting Division increased more than 7%. Even the small and mid-sized professional services firms that we spend a lot of time with are growing in double, and in many cases triple, digits.

This demand for cloud and digital talent is also driving a significant amount of M&A volume in cloud services.


The M&A Race for Talent

Dozens of acquisitions in the cloud professional services space have gone down over the last few months, including three yesterday alone — IBM’s acquisition of Salesforce consultancy 7Summits and Cognizant’s acquisitions of Australian analytics firm,Servian, and ServiceNow consultancy, Linium. In the last 12 months, Cognizant has made 11 acquisitions and invested what many estimate to be a $1.4B in cloud, data, AI and digital services.


In the last 12 months, Cognizant has made 11 acquisitions and invested what some estimate to be $1.4B in cloud, data, AI and digital services.


IBM has also been extremely acquisitive lately as its new leadership looks to refocus on hybrid cloud computing and AI, and build up its iX business unit to compete with Deloitte Digital, Avanade and Accenture. The acquisition of 7Summits, which is estimated to be ~$175M, approaching a 3.5x multiple on revenue, is just the latest. In late 2020, IBM announced plans to acquire SAP consulting partner TruQua for its hybrid cloud and financial workflow expertise, Instana for its AI-powered automation capabilities, and Nordcloud for its cloud-native tools, methodologies and talent.

And then there is all the activity in the Salesforce space, including Salesforce’s own $570M acquisition of Acumen.

But it’s important to note these acquisitions aren’t just about adding more consultants to the roster, it’s about gaining a competitive advantage from the specialized expertise, approach and assets these next-generation firms bring. All of which are needed to meet the evolving needs and escalating demands of customers.


These acquisitions aren’t just about adding more consultants to the roster, it’s about gaining a competitive advantage from the specialized expertise, approach and assets these next-generation firms bring.


Here are four attributes that we believe will become even more in-demand in PS firms over the coming year — by customers, software providers looking to build their ecosystem, and by other firms looking to acquire.


Hybrid & Multi-Cloud Expertise: Whereas earlier cloud waves required firms to specialize and go deep on certain platforms, next generation firms have to work across clouds and in hybrid enterprise environments. This is an imperative for inter-enterprise business requirements like multi-modal e-commerce and real time supply chains. DevOps expertise is a must and full stack knowledge is essential. Talent within teams that can support infrastructure and data layer providers like AWS, Hashi, Twilio, Snowflake and Datadog, will be as important as the application layer skill sets.


Integrated Offerings for Accelerated Transformation. Note, accelerated transformation not digital transformation. Digital transformation might be as overused as unprecedented and the new-normal these days. Customers want partners who can help them in ways beyond just implementation and integration. True transformation requires a blend of strategy, design, delivery, ongoing change management, optimization and maintenance, and it doesn’t (or shouldn’t) happen all at once. It’s an iterative process. The firms that offer an integrated portfolio that crosses these different disciplines, that can deliver those services seamlessly and quickly, are a lot more attractive to customers who want a long-term partner. COVID forced everyone to move much faster and proved transformation can happen in months not years. Customers need partners who understand that and continue to meet that standard going forward.


A Globally Diverse and Enabled Virtualized Workforce. The workforce looks and operates very differently than it did a decade ago (or even a year ago). Customers are much more open to remote work and now expect, and can have access, to diversity in their consulting partner teams. The partners who have built effective workforce models in these areas will have a leg up in recruiting and retaining top talent. Firms built from the ground up that embrace remote working and truly invest in collaboration technologies, policies and processes will outrun and outperform those saddled with significant commercial real estate and old school collaboration approaches.


IP Driven Industry Solutions. The verticalization of the cloud continues, and customers are looking to partners who have proven expertise in their industry and who can bring reusable, productized IP to hit the ground running. This is especially important when it comes to AI/Machine Learning, automation, data and integrated commerce.


As the next wave of cloud adoption takes hold, we believe these are the characteristics of the services firms who will lead this wave. Because 2021 is shaping up to be the year for cloud talent to scale to new heights and move in new directions.