In a world where around 305 million startups are launched annually, with many focusing on tech, the journey to success is daunting. With about 90% of startups failing—40% within the first three years—only a small fraction, around 10-20%, manage to scale and become established businesses. Success in the tech industry hinges on market fit, strong leadership, adequate funding, timing, and navigating a competitive landscape, making the achievements of successful CEOs all the more remarkable.
Xcelocloud, a tech-enabled global multi-vendor support services corporation, is part or the “10% club.” Since 2017, we’ve been pioneering a new market category, helping our partners deliver valuable, profitable services that keep IT organizations running smoothly. In this interview with Mike Champion, CEO of Xcelocloud, we explore the journey of building a tech company from the ground up.
What inspired you to start Xcelocloud on day one, and what market gap were you trying to address?
Earlier in my career, I helped lead a company that provided network solutions to large businesses across the country. Over time, I noticed a significant shift in the market—from traditional virtual private networks (VPNs) or MPLS networks to aggregated networks, which were sourced from multiple carriers and often depended on whichever provider had the last-mile connection, usually then layering on an SD-WAN solution. At the same time, the market became crowded with 87 different software-defined networking solutions, creating confusion and complexity.
I noticed two key trends in 2017: a major industry shift worth billions of dollars and a lot of confusion in the marketplace. Where there’s confusion and a big shift, there’s usually a business opportunity. This realization was the driving force behind starting Xcelocloud. Initially, we focused on the confusion surrounding software-defined networking, but soon saw the need to address challenges within managing multi-cloud and hybrid cloud environments. COVID-19 accelerated these issues, as virtual desktop implementations became essential and software updates created performance problems. This led to a growing demand for multi-vendor support services, a model that didn’t exist at scale just a few years earlier. This need inspired Xcelocloud’s launch in 2017, and in 2020, we pivoted to fully embrace this model, leading to the company we are today.
“We have a strong corporate culture at Xcelocloud, and I’m committed to seeing it flourish. We operate as a team without silos, regularly showing appreciation for each other’s hard work. My goal is to make our culture so solid and appealing that it naturally attracts the best talent.”
So, you had this idea identified; what were the steps to make Xcelocloud a reality?
Identifying the market gap was one thing, but like any new business, the next challenge was capital—always a tough hurdle to overcome. Starting a business at my stage in life? Startups are usually more common among younger generations. The advantage for me, though, was that I had friends who had done well over the years and trusted me. After 20-plus years of relationships, they were willing to invest in my idea and ability to execute, along with a track record of competing and winning business.
I had my idea and a 12-slide pitch deck, which I presented to them. These angel investors came from different backgrounds—some probably still don’t fully understand what we do, while others are very excited. Like any entrepreneur, the first big challenge was figuring out how and where to secure funding to start the company. My advice to any founder is this: if you can’t get your friends excited about your idea, it might not be as good as you think. This was the first time I asked my inner circle for investment. Friends will always tell you your idea is great, but when you ask, “Will you invest?” that’s when you really know if they believe in it.
It wasn’t easy, but I can laugh about it. After about six months of pitching, I finally secured enough funding to hire my first employees. I knew I needed people who had a “fighter’s DNA,” who were determined to win every day. That’s who I brought on at the start. We began with a lot of independent contractors, but now we proudly have 75 full-time employees, with plans to grow to 110 by early 2025. It’s been an exciting journey!
How did you determine the core values for Xcelocloud? What is your vision for the culture of Xcelocloud as the company was built?
When we had about a dozen employees, I created a list of core values that I believed were crucial to our success. Some of those values have remained with us to this day. One of the most important to me is “ownership.” I believe that when people take full ownership of their role, they don’t need to be micromanaged. In my view, micromanagement is the enemy of progress in any organization.
Later, I brought together leaders from each department to brainstorm and refine our values. We initially came up with 15 to 20, but we eventually narrowed them down to the seven core values we uphold today. While we’ve made great progress in living by these values, I believe there’s still room to improve. As a leadership team, I think our next step is to focus on the top three most critical values and emphasize them during the hiring process. This will ensure we’re not just looking for qualifications, but also for the personal qualities that align with our company culture.
What are your goals and aspirations for Xcelocloud and its employees over the next 5 to 10 years?
Looking ahead to the next 5 to 10 years, I believe Xcelocloud’s growth trajectory—where we’ve more than doubled each year—will continue. The future looks incredibly promising in that regard.
We also have a strong corporate culture at Xcelocloud, and I’m committed to seeing it flourish. Just last week, I showed an investor our #recognition Slack channel, and I said, “This is our culture!” We operate as a team without silos, regularly showing appreciation for each other’s hard work. My goal is to make our culture so solid and appealing that it naturally attracts the best talent.
I also want us to be indispensable to our customers, aiming for a 98% renewal rate. Our people, responsiveness, and technology should provide such high value that our partners and customers can’t imagine working without us. If we stay on our current path, I’m confident Xcelocloud will become a billion-dollar company.
As we reflect on building Xcelocloud, it’s clear that a strong vision, perseverance, and a deep understanding of the evolving tech landscape have been key to our success. From identifying a critical market gap to fostering a unique culture, Xcelocloud has emerged as a leader in multi-vendor support services. But the story doesn’t end here—there’s more to uncover about how we’re pushing the boundaries of innovation and scaling for future growth. Stay tuned for our next blog, exploring Xcelocloud’s approach to empowering partners and driving customer success.
And P.S. Xcelocloud is hiring!
Bridget Hildebrand
Bridget leads partner and product marketing at Xcelocloud, leveraging her decades of experience in high-tech companies to create effective messaging and marketing tools for partners. She holds a master’s degree in international management from the University of Maryland and co-owns a vineyard in Southern Arizona.
