Ingram ups cloud ante with Parallels platform acquisition

Distribution giant set to take on 500 extra 'cloud expert' staff as a result of deal, which also sees Parallels split remaining services business into two units

Global distribution giant Ingram Micro has continued to build its cloud offering with the acquisition of certain assets from Parallels Holdings Ltd.

Under the terms of the deal (financials not disclosed), Ingram will absorb the Parallels Odin Service Automation platform along with associated cloud management technologies, IP, and the Odin brand.

The deal will close this month, and Ingram said it would not affect its 2016 financial results.

In addition, about 500 Odin employees, many of whom are software engineers with cloud expertise, will join the Ingram payroll, working for the Ingram Micro Cloud division under executive vice president Nimesh Dave.

Ingram adopted and began licensing the Odin Service Automation platform in 2013 as part of its Cloud Marketplace. As a result of the deal, Odin Service Automation will now operate as a business unit of Ingram Micro.

Alain Monie, chief executive of Ingram Micro, said: “In recent years, the launch of Ingram Micro’s automated cloud platform and marketplace has positioned our company at the forefront of the evolution and adoption of cloud solutions by businesses throughout the world.

“Now the time has come for us to expand our capabilities by owning the intellectual property that is helping to drive this technology evolution. Odin Service Automation leads in cloud provisioning management and is an established industry standard for integrated cloud services. Together, Ingram and Odin will offer the ideal combination of expertise, knowledge and commercial relationships with leading cloud OEMs and innovators, which will enable our combined partner portfolio of 285 telcos, 4,000 hosting companies and 200,000-plus resellers worldwide to thrive by lifting their customers' businesses to the cloud.”

Birger Steen, chief executive of Parallels, said: “Odin is excited to join forces with Ingram Micro, whose early vision to dedicate significant assets and make the investments required to develop a comprehensive cloud services ecosystem, demonstrates unique foresight and has resulted in robust capabilities and a clear leadership position.

“With this transaction, businesses utilising Odin Service Automation now have access to an expanded portfolio of cloud solutions and services, providing them the opportunity to easily increase their reach and build new revenue streams, while significantly accelerating time to market. I am confident this event will be viewed as a pivotal strategic milestone in the evolution of the cloud ecosystem.”

Parallels also explained it will maintain ownership of its two other major service provider business units, Plesk and Virtuozzo, which will be structured as separate companies. Ingram will continue to offer both product lines to its reseller base.