Following a 10-year partnership, multi-cloud Platform-as-a-Service (PaaS) software company Jelastic has been acquired by Virtuozzo. The acquisition would now position Virtuozzo as a major competitor in the Platform-as-a-Service (PaaS) market and further enhance Virtuozzo’s position overall in the cloud services segment. Financial terms of the acquisition were not disclosed.
Jelastic is a Multi-Cloud DevOps PaaS for ISVs, telcos, service providers and enterprises that are required to speed up development and reduce threir IT infrastructure cost while improving uptime and security. The platform automates creation, scaling, clustering and security updates of cloud-based and conventional applications.
The acquisition by Virtuozzo follows the acquisition of OnApp last summer. Bringing Jelastic platform and application management capabilities in-house would help complete the core technology stack at Virtuozzo. It provides a fully integrated solution to anything-as-a-service (XaaS) use cases – from shared hosting to VPS, cloud infrastructure, software-defined storage, application management and modernization.
Virtuozzo provides their “fully integrated, easy to use and cost-effective” cloud solution to cloud service providers (CSPs), managed service providers (MSPs), hosting service providers and their SMB clients. Virtuozzo would also contribute to improved profitability for service providers by offering a wide range of services and management tools.
“Virtuozzo and Jelastic have been strong partners over the past 10 years because of our complementary technologies and products,” said Alex Fine, Chief Executive Officer (CEO) of Virtuozzo. “Virtuozzo containers have been incorporated into Jelastic’s Platform-as-a-Service for virtualization since that solution’s inception. Together, our engineering teams have co-developed solutions to enable features required by the market throughout our partnership. And now, with Jelastic joining our team, Virtuozzo can offer a complete, enterprise-grade, turnkey cloud enablement platform with fully integrated orchestration and a single point of management.”
Platform-as-a-Service Market Growth
In 2022, the PaaS market is estimated to be worth approximately $71 billion U.S. dollars according to a recent Gartner study. Cloud services (for example PaaS) are anticipated to increase by a high margin at around 27 percent.
The growing use of PaaS among service providers is driven by a desire from end-users for simple, high-performance and scalable solutions.
Through the acquisition of Jelastic, Virtuozzo can enable its service provider partners to achieve high ROI by both attracting new end-users and retaining existing customers through supporting XaaS use cases, by offering enhanced automation and simplifying their own DevOps processes.
“Our companies are completely aligned and deeply understand the challenges and opportunities in the service provider industry where Platform-as-a-Service enablement is the key in the process of SaaS-ification and digitalization of its customers,” said Ruslan Synytsky, Chief Executive Officer (CEO) at Jelastic. “Our joint partners will benefit from this acquisition since together we become a one-stop shop for Anything-as-a-Service, making it easier to get whatever they need for their users. The joint forces will accelerate the innovation and product development cycles. Together we can raise the bar for the industry standards with the help of our unique technologies that solve real problems of the cloud users.”
Business would continue as usual, with Jelastic now operating as a division of Virtuozzo. Ruslan Synytsky has been appointed to Chief Technology Officer (CTO) of Virtuozzo.
The integration of Jelastic’s sales and marketing teams is aimed at expanding Virtuozzo’s worldwide footprint and brand visibility. The integration of Jelastic’s engineering resources is intended to boost Virtuozzo’s full stack offering while providing a richer experience across multiple cloud providers.