How AI Roll-Ups & SASE Can Double Profits Overnight
Last night, over dinner in Canary Wharf, I found myself catching up with a former colleague who is now leading investments at one of the big banks. Our conversation quickly turned to AI, specifically the emergence of AI Roll-Ups, which he passionately described as the “next big frontier.” This approach involves acquiring smaller, often overlooked businesses and rapidly integrating cutting-edge AI to dramatically boost productivity and profitability, sometimes doubling or even tripling profits in just weeks or months.
This trend isn’t entirely novel. We’ve seen similar enthusiasm before when SaaS began transforming legacy business models, particularly among private equity firms. Initially, the vision was enticing – consolidate numerous small enterprises, streamline operations with modern SaaS tools, and scale efficiently. However, barring a few notable exceptions, the anticipated transformative results frequently fell short due to overestimations of operational synergy, underestimated integration complexities, and occasionally, mismatched leadership.
Yet, my friend emphatically stressed, “AI is fundamentally different.” This time, tangible evidence already exists. He pointed across the square toward Morgan Stanley’s gleaming offices. “They’ve implemented Anthropic’s Claude 4 Opus model, and say they are saving over 280,000 human hours in coding and troubleshooting this year alone.”
His eyes sparkled with the possibilities (although this could have been caused by the wine we were enjoying). “Imagine a scenario where we find a powerful AI tailored for legal conveyancing. We could consolidate 50 to 100 small legal firms, rapidly deploy AI-driven processes, and immediately double their profitability. But, why stop there? Perhaps a thousand firms!”
This proposition is not mere speculation, it’s backed by real-world successes. From finance to healthcare and professional services, AI is unlocking extraordinary efficiencies and reshaping entire business landscapes. Investors, both venture capitalists and private equity firms, are now pivoting aggressively toward AI Roll-Ups, eager to leverage AI’s revolutionary capabilities. And I, for one, fully expect to see businesses use this strategy to drive growth through merges and acquisitions.
But as history teaches us, excitement alone isn’t a guarantee of success. Effective AI Roll-Ups demand meticulous due diligence, deep operational understanding, strategic clarity, and crucially, seamless technological integration.
And this integration raises critical IT considerations: How quickly can acquired businesses align IT systems to use Agentic AI? How securely and efficiently can new, AI-driven platforms access sensitive data? I believe, the answer lies in adopting advanced, cloud-delivered Secure Access Service Edge (SASE) technologies. Solutions like Zero Trust Network Access (ZTNA), Software-Defined Wide Area Networks (SD-WAN), and Data Loss Prevention (DLP) enable swift, secure integration, significantly reducing cyber risk and accelerating operational synergies.
If you’re contemplating embracing the AI Roll-Up strategy, or any form of mergers and acquisitions leveraging AI, addressing network and data security early is paramount. At Teneo, we specialize in ensuring your IT infrastructure facilitates rather than hinders rapid AI-driven integration and growth. This is where working with an IT partner like Teneo can make all the difference.
The AI Roll-Up wave isn’t merely on the horizon, it’s already shaping market realities. The question now isn’t if this trend will reshape industries but how quickly and strategically organizations like yours can adapt and thrive.
Get in touch now to stay ahead, stay secure, and embrace the transformative potential of AI.
Author:
Brett Ayres, CTO, Teneo