Purple Cloud was founded 15 years ago and has grown from a start-up security company to a small, but well-respected competitor in the rapidly growing security sector. The founder, A. Nathan Tecnoti, is a visionary leader who forecasted the need to develop robust software products that protected both individuals and companies. As the Internet grew, so did Tecnoti’s business. He innovated rapidly, but Tecnoti could not keep up with the ever-changing technologies and was often outmaneuvered by larger companies who had larger and more proficient technical staffs and marketing budgets. Tecnoti began seeking a way to accelerate product development so he could increase market share and take advantage of new market opportunities. It is for this reason that Tecnoti developed an acquisition strategy to rapidly acquire companies that offered promising security technologies.
Invoking that strategy, Purple Cloud acquired ABCTech during a positive economic outlook. The ABCTech product acquired by Purple Cloud was completely different than any other software security application offered in the market. The product offered an elegant solution implemented with a single update to the user’s computer operating system thereby bypassing the need to distribute daily updates to address new security threats. The simplicity of the solution circumvented both the necessity to acquire capital to build or acquire extensive infrastructure and the requisite addition of high-priced support staff.
Nonetheless, the company now has approximately 200 employees, about 40% of which are full-time. Purple Cloud has survived the economic downturn of a few years ago and, in fact, experienced a resurgence on the cybersecurity front since many people feared the vulnerability of personal information located online. Despite transforming this $40 million company into a $100 million organization with a current stock price of 71, the executives still feel it is necessary to safeguard their long-term investment as they look toward a more sustainable future. The uncertainty surrounding how Purple Cloud will approach sustainability has led Chris Christianson, one of the co-founders of ABCTech, to have his company shares bought out stating that he is uncomfortable with the current forecasting.
When asked about his departure, Christianson said:
“It has been a long time coming. I was new to running a business, and as long as I was able to see where the company was going and growing, I was willing to stay. Recently, it just was not fun for me anymore. So, I am stepping down to allow the Purple Cloud leadership to replace me with someone who can help take them to the next level.”
Tecnoti, the CEO of Purple Cloud, and Thunder Thompson, co-founder of ABCTech and newly appointed chief information officer (CIO), released this joint statement:
“We are saddened by the loss of our colleague, though we know.”
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