Trace3 CEO Joe Quaglia says IT services and consulting is “a people business.” With that in mind, Trace3 acquired 140 people along with a security practice and growing MSP business when it bought Calian Group’s U.S. Commercial IT operations.
“What’s really important to us strategically is the talent,” Quaglia said. “Despite automation, AI and innovation, it's still a people business. I've always said that if we stack the deck with the best people in the industry, we're going to win. And Trace3 is winning.”
The Calian deal closed on Sept. 30. Besides all of Calian’s U.S. commercial team and leadership, Trace3 is acquiring two around-the-clock network operations centers (NOCs) and its first security operations center (SOC). Quaglia said the Calian personnel will strengthen Trace3 especially in Texas and Minnesota, extending its capabilities across software, hardware, consulting, professional services, and managed services.
Quaglia said nearly half of half of Calian’s U.S. IT commercial business came from managed and security services. Trace3, a multi-billion dollar company, generates about half of its business from security.
“We now have more capability with great engineers and great offerings on the managed side that can integrate with our existing managed business, which is one of our fastest-growing segments,” he said. “That’s exciting.”
Joe Quaglia
When Quaglia moved up from Trace3 president to CEO in July 2025, he predicted AI would create more jobs than it eliminates. He also expected Trace3 to grow both organically and through M&A. Fifteen months later, both of those have happened inside the company. He said Trace3 -- No. 358 on the 2026 MSP 501 list -- is having a record year, and much of the success is around helping customers incorporate AI.
“AI creates a significant opportunity for our client base, because every company is transforming,” Quaglia said. “There's not a single company that isn't adjusting how it will use new technology and techniques to create better products and services, deliver a better client experience, and boost productivity inside its own enterprise. AI is the catalyst for all of this. In an evolution like this, more IT dollars are spent to transform companies and make them more competitive, and we're all benefiting from that.”
As for growth, Quaglia said Trace3 is hiring rapidly while also keeping an eye out for more lucrative acquisition targets. He said his priorities are adding capabilities, talent and geographic coverage.
“We look for ways to add capability that would otherwise be too expensive, too risky, or take too long to build ourselves,” he said. “We look for acquisitions that increase our customer base and our talent, rather than trying to acquire customers or talent organically. And we look to fill white space in our markets, where we don't have as much client or geographic penetration in a segment of the U.S.”