CSPs, MSPs, and Hosting Providers Directly Benefit from Increased Ability to Provide XaaS Pay-as-You-Go Solutions to End Customers
Virtuozzo’s mission is to help shape the future of the cloud by empowering service providers with comprehensive, high performance, flexible and easy-to-use cloud infrastructure solutions supporting private, public and hybrid cloud use cases. To that end, Virtuozzo, a global leader in high-efficiency virtualization and hyperconverged software solutions, today announced it is acquiring OnApp, a London-based software company focused on cloud solutions for service providers. The acquisition augments Virtuozzo’s existing cloud IaaS and PaaS products while expanding its regional market reach.
Future-proofed Cloud Flexibility, Simplicity and Automation
The combined technological and R&D strengths of both companies directly target the evolving needs of Cloud Service Providers (CSPs), Managed Service Providers (MSPs), and Hosting Providers focused on providing IaaS, PaaS and XaaS solutions for their customers.
The resulting solution stack will pair Virtuozzo’s easy-to-use virtualization, containerization, storage and orchestration capabilities with advanced features of OnApp’s flexible self-service management platform. In turn, service providers will gain access to today’s most intuitive and robust cloud infrastructure and platform solutions capable of supporting any cloud use case.
“Virtuozzo’s primary expertise has traditionally been in high-density server virtualization and software-defined storage. We have successfully expanded over the last few years into hyperconverged infrastructure as it is crucial to the market’s evolution,” said Alex Fine, Virtuozzo CEO. “Simple, flexible and smart access to those strong, fundamental technologies is core to the success of MSPs, CSPs and Hosting Providers and therefore, core to ours. OnApp shares that commitment and brings to Virtuozzo incredible engineering talent and complementary technologies that help us advance the cloud infrastructure industry as a whole. We’re proud and excited to have the OnApp team on board.”
Market Growth Driving Innovation
Timing and demand are key factors behind the acquisition. Synergy Research Group recently reported that cloud infrastructure demand reached $129 billion in 2020, growing 35% year over year. About a third of this market is owned by non-hyperscalers—local, regional and multi-national service providers. Those providers are the beneficiaries of Virtuozzo technology.
In parallel, 451 Research, a part of S&P Global Market Intelligence, recently discussed in its 2021 analysis Demand and Opportunity in the Alternative Cloud Provider Market a potential new opportunity for alternative CSPs, noting that they may find a role in larger multi-cloud portfolios and that “alternative can mean ‘in addition to’ rather than ‘instead of.’”1 Collectively, these reports suggest that alternative CSPs and MSPs are well-positioned to become partners of choice for customers shifting to modern cloud services.
“In addition to OnApp technical expertise in cloud orchestration, user interface and content delivery networks, Virtuozzo sees the value our highly talented staff brings to the table,” stated Ditlev Bredahl, CEO, OnApp. “Integration and evolution of the joint solution stack will be strongly beneficial to the customers of both companies.”
Terms of the transaction were not disclosed. Per the agreement, OnApp will continue operation as a division of Virtuozzo with OnApp’s staff integrating into Virtuozzo’s organizational structure. Business will continue as usual with Bredahl assisting with post-acquisition integration.
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