This article originally appeared on TechTarget.

J2 Global, a cloud services and digital media company, plans to acquire service providers in the Veeam backup and recovery ecosystem in a bid to build a larger customer base and drive operational efficiencies.

Dan Timko, chief strategy officer at J2 Global, based in Los Angeles, said discussions between the company and acquisition candidates are underway. He said he sees an opportunity for J2, given the thousands of Veeam Cloud & Service Providers (VCSPs) in the market.

“If you look at the market, there are a few bigger players, ourselves included, and a long tail of smaller partners,” Timko said. “We think we are moving forward into a time where it is going to be much harder for small providers to effectively differentiate themselves.”