Russian and Ukrainian roots, US exit: Jelastic acquired by Virtuozzo

Last week Jelastic, a multi-cloud Platform-as-a-Service (PaaS) company established in Silicon Valley with Russian and Ukrainian roots, announced its acquisition by Seattle-based Virtuozzo. The terms of the deal were not disclosed. 

Jelastic’s cloud services combine platform and container capacities in a single package for hosting providers, enterprises and developers. Virtuozzo is a leader in virtualization and hyperconverged software: its solutions help businesses run mission-critical cloud workloads for their virtual environments. 

“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,” stated Jelastic, citing as examples shared hosting, VPS, cloud infrastructure, software-defined storage and application management, and modernization.

Combining the two teams, Virtuozzo aims to “offer an advanced bundle of IaaS, PaaS, CaaS and XaaS products” for IT service providers and their SMB customers.​​ Thus, the company expects to “strengthen its market position in the rapidly growing multi-cloud and PaaS industries.”

Post-merger integration could be facilitated by the fact that Jelastic and Virtuozzo had been technological partners for some 10 years, with Jelastic using Virtuozzo’s containers inside its PaaS for virtualization.

This joint technology is currently 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,” says Jelastic.

Jelastic was co-founded in 2010 by Ruslan Synytskyy, Constantin Alexandrov and Alexey Skutin. They created their business out of necessity, industry blogger Natasha Starkell noted in TechCrunch: “The three had been working together remotely on a different project, but what they found was that an ever-increasing amount of their time was spent on hosting tasks. Google App Engine put restrictions on the tools they could use, and even on the code itself. So the team pivoted into the direction of developing tools for application deployment.”

In its early days, Jelastic was resident of Skolkovo, Russia’s top international tech hub. The startup secured investments from funds connected with Eastern Europe: Runa Capital (2010)Almaz Capital Partners, Foresight Ventures (2012) and Maxfield Capital (2013).

Topics: Finance, International, M&A, News, Software, Startups
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