Virtuozzo, a global pioneer in high-efficiency virtualization and hyperconverged software solutions, is acquiring OnApp – a well-known London-based software firm focusing on cloud solutions for service providers. Through acquiring OnApp, Virtuozzo expects that its existing cloud IaaS and PaaS solutions will be enhanced as well as the company’s regional market reach.
Cloud service providers (CSPs), managed service providers (MSPs), and hosting providers focusing on delivering IaaS, PaaS, and XaaS solutions for their clients would benefit from the combined technology and R&D expertise of both businesses.
Virtuozzo’s “easy-to-use” virtualization, containerization, storage, and orchestration capabilities will be combined with sophisticated features of OnApp’s “flexible self-service management platform” in the resultant solution stack. As a result, according to Virtuozzo, service providers will have access to the most user-friendly and reliable cloud infrastructure and platform solutions available today, which can support every cloud use case.
Financial terms of the OnApp acquisition were not disclosed. OnApp will continue to operate as a part of Virtuozzo, with OnApp’s employees merging into Virtuozzo’s organizational structure, according to the agreement. OnApp co-founder and CEO Ditlev Bredahl will assist with post-acquisition integration, so business would continue as normal.
“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, Chief Executive Officer (CEO) of Virtuozzo. “Simple, flexible and smart access to those strong, fundamental virtualization 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.”
CSPs, MSPs, and Hosting Providers
The acquisition is influenced by timing and demand. According to Synergy Research Group, cloud infrastructure demand has reached $129 billion in 2020, increasing 35% year over year. Non-hyperscalers – local, regional, and multi-national service providers – would own about a third of this market. Virtuozzo technology would benefit such service providers.
Parallel to this, S&P Global Market Intelligence’s 451 Research recently discussed a potential new opportunity for alternative CSPs in its 2021 analysis Demand and Opportunity in the Alternative Cloud Provider Market, noting that they may find a role in larger multi-cloud portfolios and that ‘alternative’ can mean ‘in addition to’ rather than ‘instead of.’ These studies would show that alternative CSPs and MSPs are well positioned to become consumers’ preferred partners as they migrate to contemporary 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,” said OnApp CEO and co-founder Ditlev Bredahl. “Integration and evolution of the joint solution stack will be strongly beneficial to the customers of both companies.”