OnApp Acquires IaaS Competitor SolusVM

OnApp is enhancing its public cloud infrastructure-as-a-service (IaaS) with the acquisition of competitor SolusVM. Both OnApp and SolusVM target the service provider arena, making this a strategic acquisition that immediately grows OnApp’s revenue and market share in the telco and service provider spaces.

OnApp plans to use the acquisition to further its plans for the OnApp Federation public cloud—a solution based around OnApp Market, a wholesale service provider-to-service provider marketplace for cloud-based compute, RAM, storage and content delivery network (CDN) capacity live in more than 170 locations around the world. OnApp currently boasts 3,000 customers, and SolusVM will add 2,000 of its own service provider customers (many shared also by OnApp) to the federated public cloud network.

“This is a significant transaction that adds a few million to our revenue, a large number of customers to our community, and a new OnApp product that enables the kind of streamlined, bare-bones cloud that developers love,” said Ditlev Bredahl CEO of OnApp, in a prepared statement. “It’s a perfect complement to the fully integrated cloud, dedicated, CDN and storage services that the core OnApp platform brings to service providers.”

SolusVM’s team will also become part of the OnApp technical team. OnApp plans to expand the team to “increase the pace of innovation and development.”

Over the last couple of years, OnApp has been growing its public cloud for service providers not just in its UK home but around the world. It has also been expanding its U.S. presence and partnered with Dell last year to provide “cloud business in a box” that enables service providers to build public and private clouds to compete against the likes of Amazon Web Services.