SolusVM SOLD and acquired by OnApp

Discussion in 'Industry News' started by drmike, Sep 16, 2014.

  1. drmike

    drmike 100% Tier-1 Gogent

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  2. drmike

    drmike 100% Tier-1 Gogent

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    Press Release:

    OnApp acquires SolusVM, kickstarts the next phase of growth for the OnApp Federation

    Acquisition extends OnApp’s position as most widely deployed IaaS automation platform for service providers
    London, 16th September 2014 - OnApp has signed a definitive agreement to acquire SolusVM, the virtual server management system used by thousands of service providers to offer Infrastructure-as-a-Service cloud hosting. The acquisition extends OnApp’s position as the leading Infrastructure-as-a-Service platform provider for the hosting and service provider market, with more than 3,000 customers, and a product portfolio that spans the complete spectrum of Infrastructure-as-a-Service.

    Following the acquisition, OnApp will extend SolusVM to be able to access infrastructure from the OnApp Federation, the world’s largest public cloud. The OnApp Federation is based around OnApp Market - a wholesale service provider-to-service provider marketplace for compute, RAM, storage, and CDN capacity, that currently covers more than 170 global locations. The addition of 2,000 SolusVM service providers to the OnApp Federation will create significant demand in the OnApp Market, which translates to new revenue streams for infrastructure suppliers.

    Commenting on the news, Ben Welch-Bolen, CEO of Site5, a long-term OnApp and SolusVM customer, said:

    “This is a great move for OnApp and the SolusVM community. There’s a big market for basic VPS services and SolusVM is already a well-regarded solution for hosts looking for a proven, no-frills platform. Now SolusVM has the backing of OnApp I’m looking forward to seeing it develop and grow while keeping that pure focus. Opening up SolusVM to the OnApp Federation is an interesting move, and I think providers like Digital Ocean and Linode will be keeping a watchful eye on how that develops. OnApp has disrupted established markets more than once in the past and could be about to have a big impact again.”

    “This is very cool news for OnApp and SolusVM customers, and, we hope, for the whole hosting industry,” said OnApp CEO, Ditlev Bredahl. “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. It’s a perfect complement to the fully integrated cloud, dedicated, CDN and storage services that the core OnApp platform brings to service providers.”

    “Most importantly, though, this is the next phase in the growth of the OnApp Federation and the OnApp Market. You have to balance supply and demand when you’re building a new marketplace. Over the last couple of years we’ve built up an amazing supply of infrastructure in the OnApp Federation, with a huge range of price and performance options for CDN and now compute resources too. Bringing the Solus community into OnApp will create a huge boost on the demand side, and enable SolusVM providers to offer quick and easy cloud servers that can be deployed on demand, all over the world.”

    The SolusVM team, led by Phill Bandelow, will become part of the OnApp technical team and will be expanded to increase the pace of innovation and development.

    “We’re delighted to be joining OnApp, to be part of the force changing the hosting industry,” said Phill. “Adding SolusVM to the OnApp portfolio is a natural fit, and is great news for our customer base who can look forward to a faster pace of innovation while getting access to the service and support that OnApp is famous for. We’re getting the backing and stability of an industry leader, and a team that understands hosting inside-out, and cares about delivering what SolusVM users need.”

    With the addition of SolusVM, the OnApp product range now enables service providers to offer the full spectrum of Infrastructure-as-a-Service products, from bare-bones cloud servers running on SolusVM, to fully integrated cloud, bare metal, hybrid smart servers, storage and CDN running on the OnApp platform. It also means that service providers can use the OnApp portfolio to sell services based on Xen, KVM, VMware and OpenVZ, the most popular container-based and hardware virtualization platforms.

    The terms of this cash deal were not disclosed.

    About OnApp
    OnApp software enables hosts, telcos and other service providers to sell the complete range of Infrastructure-as-a-Service products, from bare-bones virtual servers to fully-automated cloud, dedicated servers, CDN, storage and more, and scale on demand using infrastructure from OnApp’s global federated cloud.

    OnApp launched in July 2010. Today more than 3,000 service providers in 87 countries run on OnApp software. OnApp has 140 staff across the EU, U.S. and Asia-Pacific and is headquartered in London, UK. For more information visit http://onapp.com.
     
  3. blergh

    blergh New Member Verified Provider

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    It'll be interesting to see how this plays out, considering the past "oopsies" that OnApp has shared with us.
     
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  4. AshleyUK

    AshleyUK New Member Verified Provider

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    Hopefully it is good news, and with the larger company backing they can get some more developers on and start pushing out the long requested features that will really improve the panel.
     
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  5. HalfEatenPie

    HalfEatenPie The Irrational One Retired Staff

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    But...

    I mean...  

    Isn't OnApp like riddled with terrible bugs or problems to begin with? (Anyone have any specific examples?  This is all from what I hear)

    I have incredibly mixed feelings about this... Mostly because I don't have too in-depth knowledge about OnApp's software side.  
     
    Last edited by a moderator: Sep 16, 2014
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  6. drmike

    drmike 100% Tier-1 Gogent

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    OnApp like most companies has had prior issues.  I expect the probably have some sore spots currently with a vocal subset of customers and/or former customers. Who doesn't though?

    OnApp seems to be doing more interesting things lately like pushing their cloud.net offering.

    I look at this as a good step / acquistion for the industry and  I hope OnApp gets busting tail on the new acquisition.  SolusVM has stagnated for a long while and I am sure 50 different people could send in their wants, wishes, overdue features.  

    I know the folks at OnApp are reading --- so go ahead :)
     
  7. sv01

    sv01 Slow but sure

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    and how about pricing ?
    OnApp not targetting low end market
     
  8. Francisco

    Francisco Company Lube Verified Provider

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    @AnthonySmith made a comment on WHT that while they aren't going to jack the price this very second, it's likely going to go up a little bit at least.

    Virtualizor might suddenly see this as their chance to really dice up the market but I dunno.

    I hope their first task is doing a complete rewrite and to do only maintenance releases for a year to get it in place. Does the project really need more incomplete features? It has a shopping list of them already.

    Francisco
     
  9. NullMind

    NullMind New Member Verified Provider

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    Pricing has been the main concern it seems, but we have stated, we have no plans for increasing it, and I can assure you, the price you get today will always be attainable 

    This is indeed good news for Solus providers, we are bringing more developers and resources to the project, the ability for Solus providers to consume from the federation and much more, why be stagnant when you can grow ?
     
  10. Francisco

    Francisco Company Lube Verified Provider

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    Oh no no, by all means, bump the price all you want, it makes no difference to me :)

    I stopped paying for that crap many moons ago.

    I don't think you know Solus' market very well if you think users are going to be looking to sell onapp resources. Many (read: 51%+) of their users are all budget driven hosts that work with extremely tight margins. Do you think they'll be able to upsell a $30/m cloud redundant VPS or would be willing to take the chance of that kind of chargeback blowing out their piggy banks for the month?

    If you're wanting to make the federation stuff a two way street (SolusVM customers are able to offer into the onapp federation platform for low/no cost) then I really hope your users like Buffalo, Buffalo, a dash of Atlanta, Buffalo, Buffalo, etc. For your own sake i'd recommend against such horrible ideas. There's countless SolusVM using hosts that go through their users data w/o permission to try to find violations to terminate them without a refund.

    In the dating world there's a very wise saying of "Don't stick your dick in crazy", but there's also the flip side "Don't let crazy stick it's dick in you". It's hilariously offensive but it's fitting.

    Francisco
     
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  11. NullMind

    NullMind New Member Verified Provider

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    Francisco

    You are correct in your view that a big portion of hosts that offer Solus today are not "Cloud" type hosts, but allot of it it's due to how much it costs to run a cloud.

    The federation opens the doors for them to offer it to some of the clients who need a redundant system, instead of loosing the client to other providers, it's not for everybody, but for those who can take advantage of it, it will open a whole new market.

    Somebody should make a bumpersticker of that saying ... made my day :)
     
  12. serverian

    serverian Well-Known Member Verified Provider

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    Don't worry. Noone is that capable to make SolusVM worse :p

    In SolusVM world, everything is designed by the principle that every single command executed should work perfectly, without any errors. No checks, what so ever. And that's why you end up with issues like:

    - Containers created without IPs

    - Zombie containers hanging out randomly on the nodes

    - Suspended containers that are still running

    - Containers supposedly powered on but offline

    - And pretty much everything that can fail, fails without letting you know.
     
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  13. Francisco

    Francisco Company Lube Verified Provider

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    The IP one is hilarious. When we used Solus we saw it happen all the time when you'd fire 2 provisions at once. It was so bad back then that you'd have 2 VM's provision with the same IP's, but only one of them having the IP bound in SolusVM itself.

    After a little logging I found out why it happens and simply signed out for the day.

    Francisco
     
    Last edited by a moderator: Sep 16, 2014
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  14. DomainBop

    DomainBop Dormant VPSB Pathogen

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    That's close to the thoughts I voiced on OnApp's ability to woo current SolusVM users a few days ago.



    This acquisition really doesn't change my feelings that OnApp's lack of inroads into the corporate cloud market (and its reliance on small to mid sized webhosting clients) are going to be a stumbling block going forward and place it at a disadvantage in gaining marketshare in the "cloud arena" to OpenStack and CloudStack which have been widely embraced by many corporate giants.

    Cost is part of the reason but a lack of technical competence is also a major reason that many SolusVM users are not "cloud type hosts" (especially the low end openvz segment of the market),  Read through a few threads on LowEndTalk or WHT and you'll find many hosts who have limited knowledge of Linux, programming languages, etc., etc. and would be lost if they didn't have a push button solution like SolusVM. I shudder to think what would happen if they tried to offer a "cloud" type product.

    Higher paying customers who are seeking redundant HA solutions tend to have higher expectations for security and a provider's business processes, etc, and as Francisco alluded to ("those mofos rifle through their customers data") many SolusVM providers have inadequate protections and policies in place.  Here's a little spreadsheet "Questions to Ask Your Cloud Provider".  I think many SolusVM providers would get failing grades if they answered those questions honestly. 

    tl;dr I don't expect to see the average budget conscious customer of a SolusVM provider going for higher priced cloud offerings, and I really don't see high end customers going for the average SolusVM provider because of security concerns and concerns about a provider's business processes, etc. 

    tl;dr, tl;dr the addition of "the federation" to SolusVM isn't going to cause higher paying Rackspace customers to migrate to the likes of GVH/CVPS, etc
     
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  15. Francisco

    Francisco Company Lube Verified Provider

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    WHY WON'T SOMEONE THINK OF THE SANS?
     
  16. Enterprisevpssolutions

    Enterprisevpssolutions Article Submitter Verified Provider

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    WOW is all I got to say lmao. I can hear the clients now complaining :popcorn:  
     
  17. DomainBop

    DomainBop Dormant VPSB Pathogen

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    Shakespeare often thought of them.. "Sans teeth, sans eyes, sans taste, sans everything"
     
  18. HalfEatenPie

    HalfEatenPie The Irrational One Retired Staff

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    Did you...

    Did you just quote yourself?

    Or am I just seeing doubles?

    I'm so confused.  
     
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  19. MartinD

    MartinD Retired Staff Retired Staff Verified Provider

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    Yeah, I deleted the first one because I thought it was a double post.. turns out he quoted his original post (that I deleted) and added more.. making me look like a mong :p
     
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  20. HalfEatenPie

    HalfEatenPie The Irrational One Retired Staff

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    HalfEatenPie
    Haha well ok then!  

    I just realized Solus and OnApp have same/similar colors in their logo.  Grey and Blue.  I smell a conspiracy!  
     
    Last edited by a moderator: Sep 16, 2014