Channel Brief: AMD to Buy ZT Systems for AI Data Centers, Plus More Channel M&A

Every tech vendor has embraced on artificial intelligence in the last year from Microsoft to VMware to Dell to plenty of channel focused tools vendors, too, including ConnectWise, Kaseya and N-able. The roadmaps of 2023 have yielded to actual product plans in 2024. Managed service providers and other channel partners are building roadmaps and programs of their own to implement AI services and products for themselves and their customers.

It’s against this backdrop that chipmaker Advanced Micro Devices (AMD) announced that it has agreed to buy server maker ZT Systems in a deal worth $4.9 billion. The acquisition will provide AMD with data center technology to help it compete against AI chip giant Nvidia.

Nvidia used to be known as a maker of chips for video games, but that same technology applies to the kind of coprocessing that is required for AI workloads. That pushed the company to become the most valuable in the world in June (although it’s since been knocked out of that spot by Apple). AMD is perhaps Nvidia’s most serious rival when it comes to AI chips, and the race is on among AI chipmakers to fill the growing demand for AI-capable data centers.

AMD is clearly pursuing an acquisition strategy to get ahead in that race. In addition to the ZT Systems deal AMD snapped up Silo AI for $665 million in cash in July, saying the deal would further its commitment to deliver end-to-end AI solutions based on open standards and in strong partnership with the global AI ecosystem.

Here’s a wrap up of what else MSPs, MSSPs, TSPs and other channel partners need to know today.

Today’s Tech, Channel and MSP News

1. Data center expansion - Leaseweb will expand data center operations and services across the East Coast, including Miami, New York City, and its headquarters in Washington, D.C. The cloud services and infrastructure as a service (IaaS) provider said the expansion will enhance its ability to deliver high-performance colocation, cloud, dedicated services, and network services.

2. Gaining CMMC compliance - MSP tools company ConnectWise is working to help MSPs gain CMMC Level 2 compliance requirements (Cybersecurity Maturity Model Certification). ConnectWise is adopting a three-stage adherence strategy that first targets achieving CMMC Level 2 compliance by  2025 through an initial launch in an isolated AWS commercial hosting environment. Next the company will evaluate Level 3 requirements and potential hosting in Government Community Cloud environments. Third, the company will make ConnectWise’s CMMC portfolio hosted and available to MSPs.

3. Some M&A news from down under -- Blackbird IT has acquired South Australian managed service provider Calvert Technologies to bolster its position in the geography.  Blackbird IT previously acquired Sydney-based MSP Autonomous IT in 2022.

4. Disti deal - Hybrid distributor ScanSource has acquired Advantix, a VAR-focused, managed connectivity experience provider specializing in wireless enablement solutions. The companies have partnered for more than 5 years in providing support for hardware VARs looking to grow their mobility businesses. The deal coincides with ScanSource creating a new business group called Integrated Solutions and Services (ISS), focused on developing services to provide hardware VARs with the opportunity to wrap additional value around hardware offerings.

5. Yet another acquisition - Integrity Data Solutions has completed its acquisition of Compu-Call. Integrity Data Solutions is an automated data collection and supply chain solutions provider. Compu-Call is a print solutions provider to more than 300 companies across North America. Integrity Data Solutions said the deal with expand its print solutions offering and enhance its ability to provide value0add solutions to customers.

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