Another year has passed by, and this was not an ordinary one. 2016 was the 15th CAPSiDE anniversary and it was the year that we reached the range of 5M€ revenue and over 50 people in the team.
These figures are relevant from a specific perspective. In 1972, Professor Larry Greiner wrote a Harvard Business Review article called “Evolution and Revolution as companies grow” in which he outlined five stages of growth from start up to maturity. Equiteq has applied this model to the professional services sector with the conclusion that just 12% of the companies break the barrier of $5M (€4.7M) and 25 people.
CAPSiDE has successfully reached this maturity level in 2016 and it is even more remarkable since, according to a company survival analysis performed by IE Business School, 98% of companies in Spain die during its first 5 years. Thus, less than three out of every 1000 companies created in Spain survive and reach our maturity level. We are very proud of such achievement. However, we do not want to stay here. Out target is moving to the next level in three years from now.
One of the most important conclusions from Professor Greiner’s article is to recognise that there are Glass Ceilings that prevent from moving from one maturity stage to the next one. Thus, we should not naively believe that we could just simply keep growing at the same pace year after year. We must handle the changes necessary for the new stage if we do not want to be stuck due to unexpected obstacles. Thus, 2016 was not only a year of growth for CAPSiDE but also a year for preparation. Indeed, we sacrificed some results in order to achieve several milestones that will drive us to the future.
Preparing for the future
We are aware that we must smash Glass Ceilings to advance. It is not just a matter of revenue and profit; it is also about developing the foundations to cope with new challenges. During 2016 we have been working on the next big jump while taking care of the roots that make CAPSiDE so unique. We focused on three main lines:
- In Q4 we opened our first overseas subsidiary in London. With an outstanding team and a vibrant IT market, in just a few months we have performed a high level of engagement with strategic partners such as AWS and Microsoft, deployed several marketing events and technical workshops and developed services for some new customers. We expect that CAPSiDE UK will boost our business in the oncoming years.
- Cloud automation products. Our Managed Services customers have been taking advantage of CAPSiDE’s automation technology for years. 2016 was the year when we invested on developing and packaging our IP into tools and products that will be soon generally available as Software as a Service for consumption to any customer or under Open Source licensing. Services on top of our products will be a new strategic stream of business.
- Onboard the best talent. The heart of our business is our engineers. Our team is our best value. Their attitude, passion, commitment and skills are our bigger differentiators. They live and breathe DevOps, automation and innovation. As our CEO Josep Ruano explained in the 2015 recap, we live in a world where talented tech people are a scarce resource but in CAPSiDE we choose to grow well. Thus, again we invest massive effort and resources on recruitment and training of our team. Now we are ready to address the greater expected volume of customers and projects.
2016 has been also a year when we have received important recognitions from our partners. We reached the Cloud Gold competency and received the “Digital Transformation Partner Of The Year” award from Microsoft. We have also passed the Authorized Managed Service Provider (MSP) audit from AWS, and since we were the first AWS Authorized Training Partner of the world, now we are Authorized Service Delivery Partner for AWS Lambda and DynamoDB, and AWS Public Sector Partner.
Despite the previous investment, this year we still achieved remarkable business objectives:
- Again we have grown our revenue in a double digit with 264% accumulated in last three years (a CAGR of 42% over the last 3 years)
- We have increased our team by near 60%, turning out to a 2.5 multiplier in three years
- We have opened CAPSiDE UK Ltd., with offices in Aldgate Tower, in London, investing near £1 Million. This is a significant landmark for us, but this is just the first step in our international expansion.
We have done that over last years while keeping significant positive EBITDA during all this period.
What will come next
2017 looks exciting and promising.
Definitely, we will have thrilling moments in CAPSiDE UK. Our code deployment tool ENZiME® will be officially launched in Q1/2017 and several Open Source tools will be available from March. We well increased our service portfolio to address new market tendencies such as containers and serverless under truly innovative service model approach; and our training business will be reinforced to walk the journey of the Digital Transformation together with the customer, enabling them to really understand and succeed in this new reality.
And of course, we will keep ambitious growth objectives. In order to break the next glass ceiling, we are planning a 132% revenue growth and almost double our team in the next three years. It will put as well above $10M and 100 people, ready to break the last ceiling that only 1% of the companies achieve.
The world is changing faster than ever, and CAPSiDE will keep evolving, as we have been doing from our birth 15 years ago. Transformation is in our DNA because in IT world, change has never been an option –and now, it is not an option in any industry. We love it and we know how to do it without losing our unique culture and values.
In 2016 we have built the foundations that will help us to succeed in the next step. Incredible and enjoyable moments are just around the corner. But this is something that we will relate in twelve months.