Jelastic PaaS is Acquired by Virtuozzo: What to Expect

After Decade-Long Partnership, Jelastic Acquisition Strengthens Virtuozzo’s Position as a First Full-Stack Cloud Management Solution for Service Providers

5 min readOct 5, 2021

Virtualization and hyperconverged software leader Virtuozzo acquires Jelastic multi-cloud Platform-as-a-Service (PaaS) company following a 10-year partnership.​

Bringing Jelastic’s platform and application management capabilities in-house completes Virtuozzo’s core technology stack, delivering a fully integrated solution that supports all relevant anything-as-a-service (XaaS) use cases — from shared hosting to VPS to cloud infrastructure, software-defined storage and application management and modernization.

The acquisition combines the businesses and teams of the companies in order to offer an advanced bundle of IaaS, PaaS, CaaS and XaaS products designed for Cloud Service Providers, Managed Service Providers, Hosting Providers, and their small and medium-sized business customers.​​

“Virtuozzo and Jelastic have been strong partners over the past 10 years because of our complementary technologies and products. 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,” said Alex Fine, CEO of Virtuozzo.

Such synergy of two strategically aligned vendors is leading to a smart combination of Virtuozzo’s advanced virtualization and containerization capabilities with Jelastic’s flexibility and automation of cloud and container management via intuitive user interface.​​

With this acquisition, Virtuozzo is strengthening its market position in the rapidly growing multi-cloud and PaaS industries. Service providers that are partnering with Virtuozzo are getting a wider set of tools and services in a turnkey bundle in order to differentiate from competitors, increase profitability and cost-efficiency.​

Established History of Relations

Jelastic and Virtuozzo have a long-established history of relations. Virtuozzo containers were used inside Jelastic PaaS for virtualization from the very beginning of the platform development. ​

Currently, the joint technology is already available across a wide range of hosting service providers in more than 100 data centers around the world for running millions of end users’ applications in a very cost-effective way. Thus, the merge is going to be done smoothly without breaking the existing processes and products but focusing on further enhancements by involving experts from both sides.​

Service Providers Want Simplicity, Automation and Choice

Service providers demand simplification and automation in container and cloud management. Jelastic has been providing a proven production-ready platform to cover these needs for years. The acquisition enables tighter integration and seamless enhancements.

In addition, service providers require a wider set of products to offer to end users. “Freedom of choice” is the core mantra that runs throughout the Jelastic ecosystem. Customers can choose various solutions and services, different types of workloads and management through an automated orchestration.

Jelastic enables service providers differentiate among competitors by selling full-featured PaaS, container orchestration, a wide variety of packaged clusters (like Magento, WordPress, Kubernetes, Jakarta EE, replicated SQL and NoSQL databases, etc) and auto-scalable Elastic VPS to their customers. Also, they get the required tools to manage the platform, support customers, and monitor ROI growth.​

With Jelastic’s acquisition, Virtuozzo can help MSPs, hosting and cloud providers to:

  • attract new customers by offering XaaS and more advanced automation tools that can simplify daily life for their end users as the number of internet applications and websites are constantly growing, and managing old school VPS deployments is not an efficient approach anymore​
  • be able to retain existing customers, reduce the churn and prevent users’ migration to more sophisticated solutions compared to the home-made infrastructure orchestration systems​
  • simplify own DevOps processes reducing the required amount of human efforts and increase ROI while running cloud business with intuitive and flexible cloud management platform​

“Our companies are completely aligned and deeply understand the challenges and opportunities in the service providers industry where Platform-as-a-Service enablement is the key in the process of SaaS-ification and digitalization of its customers. 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,” said Jelastic CEO Ruslan Synytsky.

Platform-as-a-Service Market Shows Strong Growth

In 2022, the platform as a service (PaaS) market is estimated to be worth approximately 71 billion U.S. dollars based on Gartner research. Application infrastructure services (PaaS) is anticipated to grow by a high margin at around 27%. ​

The increased adoption of PaaS among service providers is driven by the end-users’ demand for access to easy-to-manage, high performing and scalable solutions in order to modernize their solutions, run cloud-native applications and smoothly go through digitalization.​

Many PaaS vendors focus on a single-purpose offering. Jelastic, however, offers a robust, multi-purpose solution that, via the acquisition, will position Virtuozzo as a strong player in the PaaS market and further strengthen Virtuozzo’s position overall in the rapidly growing cloud services space.

Business as Usual

Business continues as usual, with Jelastic now operating as a division of Virtuozzo — underscoring the equity in Jelastic’s brand and technologies. Jelastic CEO, Ruslan Synytsky, has been appointed to Chief Technology Officer of Virtuozzo.

Integration of Jelastic’s sales and marketing teams will expand Virtuozzo’s worldwide footprint and brand visibility; and integration of Jelastic’s engineering resources will enable Virtuozzo to accelerate its full stack offering and provide a richer experience across multiple cloud providers.

Terms of the transaction were not disclosed.