In July 2021, Virtuozzo, a cloud infrastructure provider, revealed its recent acquisition of the software developer company OnApp. OnApp is a company that focuses on the development of cloud solutions for various service providers.
Although the two companies have not unveiled the financial details of the new deal, it is likely to be a good move.
OnApp, a London-based company, will now come under Switzerland-based Virtuozzo post the acquisition. Terms of the acquisition were not made available to the public. However, according to the agreement, OnApp will continue to operate as a division of Virtuozzo.
OnApp’s employees will become a part of the organizational structure of Virtuozzo. Post-acquisition and integration of OnApp into Virtuozzo, the business will continue like before.
Before we learn more about the acquisition deal, let us look into the details and tracks of both OnApp and Virtuozzo.
Cloud Infrastructure Services
Cloud infrastructure and computing have become very popular in recent times. It refers to the availability of computer system resources like cloud storage and cloud computing power without any active, direct management by the user.
With the development of high-capacity networks, storage devices, low-cost computers, service infrastructure, and hardware virtualization, the cloud computing industry will boom in the near future.
Insight on OnApp
London-based OnApp is a software company that develops and manufactures software and services. Launched 11 years ago in July 2010, OnApp has set up and sold over 6,000 clouds for various service providers across 93 countries to date.
Headquartered in London, United Kingdom, OnApp has over 130 employees spread out across the European Union, the United States, and the Asia-Pacific region.
Their services let hosts, telecom providers, MSPs, et cetera produce and enable hosts, MSPs, and telecoms providers to make and sell hybrid clouds, either public or private, to their customers.
More about Virtuozzo
Switzerland-based Virtuozzo is one of the premium cloud infrastructure providers across the globe. They offer services like storage services, hybrid virtualization, software development, and cloud enablement solutions to various service providers.
A pioneer in the software technology industry, Virtuozzo was the first company that developed the very first container technology for commercial purposes twenty-one years ago.
Over the past few decades, Virtuozzo has expanded in terms of its size and the services it provides. They invested large sums in software research and development, which helped tap into large markets.
A Bit about Virtuozzo’s Services
They are a hyperconverged, software-defined, self-service platform and know-how to manage their resources in the most optimum manner. It allows them to host while letting various service providers offer public and private cloud services to customers at the end of the chain.
Virtuozzo provides software solutions and cloud services to more than 450 service providers, enterprises, companies, and ISVs across the globe. The company enables more than five hundred thousand virtual environments and operates crucial cloud workloads.
Virtuozzo also sponsors and contributes to various open-source projects like the Linux Kernel, KVM, OpenStack, CRIU, OpenVZ, and the Docker. It has been a significant contributor when it comes to the open-source world.
How Will the Acquisition of OnApp Help Virtuozzo?
The first question that comes to our minds is the cost-benefit analysis of the acquisition of OnApp. How will this move enhance Virtuozzo’s profitability or market standing?
According to Alex Fine, the CEO of Virtuozzo, the acquisition of OnApp will increase the pace of Virtuozzo’s role as the leading provider of cloud infrastructure enablement services to service providers.
The company has been providing infrastructure and software services to service providers for more than 21 years. The acquisition of OnApp will help them achieve a monopoly in the industry.
Benefits of the Acquisition of OnApp by Virtuozzo
The main aim of acquiring OnApp was to reduce competition in the market. OnApp and Virtuozzo provide the same services to service providers.
By acquiring OnApp, Virtuozzo essentially expands its client base and service provisions.
While OnApp focuses on management, user interfaces, orchestrating, and networking, Virtuozzo specializes in software-defined storage, orchestration, virtualization, and less on management services.
By combining OnApp and Virtuozzo, they aim to merge teams and software technology to cater to service providers who are small and large. They plan to do Iaas and PaaS for their clients.
Tapping the Market Outside Hyperscalers
Virtuozzo is looking to expand its client base in the market outside the ambit of hyperscalers. Currently, it is a rapidly growing market with huge potential for cloud infrastructure, IaaS, PaaS, and storage services.
According to Synergy Research Group, the market outside hyperscalers is growing at a year-to-year rate of 35 percent.
With the COVID-19 pandemic, there has been an increase in demand for cloud infrastructures services amongst various service providers. The acquisition of OnApp will help Virtuozzo tap and expand its reach in the cloud infrastructure business world.
Employees all over the world are working from home. With the entire world going online, companies are switching service delivery and hosting methods. Why host on-prem when the hosting services are going through a paradigm shift.
Virtuozzo aims to provide better and more advanced services and solutions to service providers and enterprises around the world. With the plan of reaching out to over 100,000 MSPs across the globe and more than 30,000 to 50,000 MSPs just in the United States, Virtuozzo is dreaming big.
They plan to strengthen their distribution relationships, especially with companies like Arrow and Ingram Micro, to bring on board licensing, cloud-based services, and professional services to their partners.
Virtuozzo’s Future Plans and Prospects
Virtuozzo recently launched their very own cloud offering in the market. They have researched the market and realized that service providers are not looking into the hardware aspect.
Therefore, tapping into the hardware market did not make sense when it comes to scaling and expansion for Virtuozzo. Thus, they plan to offer software and infrastructure solutions.
By offering their premium enterprise-grade cloud, which works like AWS, Virtuozzo plans to provide services to service providers.
Virtuozzo’s Mission Post Acquisition
Virtuozzo’s mission is to revolutionize the outlook of the cloud infrastructure market by encouraging service providers worldwide to shift to easy-to-use, comprehensive, premium quality, excellent performance, and super flexible cloud infrastructure solutions.
They aim to help service providers support public, hybrid, and private cloud use cases. As a worldwide leader in highly efficient virtualization and premium quality software solutions, Virtuozzo’s acquisition of OnApp will be beneficial.
The acquisition of OnApp will help Virtuozzo enhance its already existing cloud PaaS and IaaS products. It will also help them expand their regional and global client base in the cloud infrastructure market.
Cloud Flexibility, Automation and Infrastructure Services for the Future
OnApp and Virtuozzo both have highly efficient and premium standards of advanced software technology and R&D strengths. They both target developing and enhancing services to Managed Service Providers, Cloud Service Providers, and Hosting Providers.
Both companies have a focused aim for providing XaaS, PaaS, and IaaS solutions for their clients across the globe. The acquisition of OnApp will help ensure cloud felicity and enhance infrastructure services in the service provider market.
The acquisition will result in a solution stack that will merge Virtuozzo’s USP of simplistic virtualization, storage services, containerization, and orchestration abilities with the premium technology used in OnApp’s compliant self-service management platform.
The benefit for all service providers who are the clients will be access to one of the most modern, intuitive, and strong cloud infrastructure services and software solutions that can support any cloud use case.
Virtuozzo has gained expertise in software-defined storage services and high-density server virtualization. In the past few years, they have expanded in the hyperconverged infrastructure aspect as the market is gradually evolving.
Virtuozzo has expertise in engineering and software technologies, which has helped them enhance the cloud infrastructure realm in the world. OnApp shares the same goals and aims as Virtuozzo and is a beneficial addition to the company.
Market Growth in Cloud Infrastructure
The acquisition of OnApp is due to the needs and the demands of service providers in the world. According to the Synergy Research Group, the demand for cloud infrastructure touched $129 billion in the previous year. It shows a market growth of 35% year over year.
Nearly 33% of this market is under the possession of non-hyperscalers. It includes local, multi-national, and regional service providers. With the acquisition of OnApp, Virtuozzo aims to tap into this market to help them benefit from Virtuozzo’s technology.
Summing Up
The acquisition of OnApp by Virtuozzo will create a revolution in the cloud infrastructure and services market. Several service providers across the world will benefit from this merger.
With OnApps management technology and expertise in the user interface, content delivery networks, and cloud orchestration, Virtuozzo will be expanding its market and develop better and more advanced cloud technology.
The integration of OnApp with Virtuozzo is likely to bring great advancement in the service providers market. With time, we can expect them to develop and bring great software technology to the table.