Virtualization Technology News and Information
VMblog Expert Interview: Alex Fine Explores Virtuozzo and the Alternative Cloud Market


The COVID pandemic caused many businesses to accelerate their digital transformation strategies, causing them to move part or all of their data to the cloud. Businesses can choose to work with hyperscalers or they can choose to work with an alternative cloud provider. But where can these alternative providers source the technologies, products and services they need to successfully deliver to customers a simple and affordable cloud experience? The answer: Virtuozzo.

To learn more, VMblog spoke with Alex Fine, Virtuozzo's CEO (both Chief Executive Officer and Chief Energy Officer). 

VMblog:  What does Virtuozzo specialize in today?

Alex Fine:  Today, Virtuozzo is a global leader in cloud enablement software for alternative cloud providers, offering easy-to-use, flexible and affordable solutions for public, private and hybrid clouds.

VMblog:  How has Virtuozzo evolved over the past 20+ years?

Fine:  Virtuozzo was initially a virtualization product under the company Parallels before it spun off to become its own private company in 2015. Part of our legacy involves being a pioneer in container technology that we offered to the hosting provider market in 2001. Additionally, our work in the open-source Linux community initiated throughout these years established us as a top contributor to and sponsor of relevant projects.

However, our company today is very different. We have evolved, expanding beyond virtualization technology into complementary areas, namely alternative cloud offerings, that are critical to helping our service provider partners grow, transform and thrive.

We recently acquired Jelastic and OnApp, providing us with a powerful multicloud Platform-as-a-Service (PaaS) layer as well as cloud management platform capabilities. Bringing such capabilities in-house completes Virtuozzo's core technology stack, allowing us to deliver the industry's first fully integrated, easy-to-use and cost-efficient cloud solution designed for cloud service providers, managed service providers, hosting service providers and their small and medium-sized business customers. These acquisitions further strengthen Virtuozzo's position overall as a leader in the rapidly growing alternative cloud industry.

VMblog:  Who does Virtuozzo sell to? 

Fine:  Virtuozzo's primary customers, referred to as partners, are cloud service providers, managed service providers and hosting service providers. We develop the technologies, products and services designed to their operational needs. For example, TLine, a leading managed cloud service provider, integrated Virtuozzo Hybrid Infrastructure into its easy-to-use cloud marketplace in just one week, and, in turn, reduced time-to-market for end-users from months to hours.

VMblog:  Why does Virtuozzo refer to its customers as partners?

Fine:  We are partners in delivering cloud solutions to the service providers' end-customers. We also go well beyond the traditional customer-vendor relationship. We help our partners solve complex business and technology challenges to open new revenue streams that can make them more profitable. We believe that this type of relationship is unique to Virtuozzo and is a significant differentiator.

We have created a direct mutual feedback loop with our partners. Their feedback strategically influences our roadmap; and our feedback helps them benchmark their business against their successful peers from different regions.

Joe's Datacenter and TLine offer two examples of how we work with our partners. Partnering with Virtuozzo helps Joe Morgan, founder of Joe's Datacenter, reduce cost and complexity for its customers - MSPs, SMEs and enterprise customers - and provide a better alternative to hyperscale clouds. TLine's experience with us helped the service provider accelerate its Anything-as-a-Service vision, cutting its infrastructure costs by 300%, and increasing its margin by 30%.

VMblog:  What do you believe is the future of the alternative cloud industry?

Fine:  Depending on who you count as a hyperscaler, the market share of alternative cloud providers today is 20% to 40%. We see the ratio between hyperscalers and alternative cloud providers has stabilized, while the entire IaaS and PaaS market, estimated today at $160B, is growing annually in excess of 25%. So, there is a huge opportunity for alternative cloud providers that is truly unlimited.

We believe that alternative cloud providers are going to stay relevant in the cloud landscape. Why? It comes down to the relationships that they can build with their customers, unlike the hyperscalers which are primarily automated. In a world that is becoming more and more automated, the value of human relationships is not disappearing. It is becoming more important.

Additionally, alternative service providers can, in many cases, offer better compliance with local regulations on data sovereignty than hyperscalers as well as work with their customers on tailored technology solutions and pricing. You might also be surprised to learn that alternative service providers can offer better performance and even better availability than hyperscalers who are set up to serve customers without any special demands.

So, the future and opportunity for alternative cloud providers is bright, but it is indeed a competitive market. There are options for end customers, so service providers need a comprehensive solution and enablement partner to win. Virtuozzo is that partner.

VMblog:  What do alternative cloud providers need from their cloud enablement partner?

Fine:  We see several key trends. First, service providers need a solution that is simple to manage both for them and for their customers. Then, they want a comprehensive solution...meaning, instead of cobbling together numerous components from various vendors, they want a single solution that includes virtualization (with options), storage (with all supported protocols), orchestration, self-service, multi-tiering and metering. On top of that, maximum automation of routine tasks is a definite advantage. Finally, service providers want a broader set of products to offer their end users.

Virtuozzo delivers on these trends, ensuring that the technologies we offer are easy-to-use, flexible and affordable. We are also a "one-stop shop" for Anything-as-a-Service (XaaS) solutions, making it easier for our partners to develop and manage whatever they may need for their customers.

VMblog:  How is Virtuozzo different from others in the industry?

Fine:  We differ in three distinct ways: 

  1. We truly are easy-to-use and cost-efficient at the same time.
  2. We offer the industry's first fully integrated cloud solution specifically designed for service providers.
  3. We are true partners, helping service providers solve difficult challenges while establishing new revenue streams for increased profitability. At the end of the day, the relationship is really what sets us apart.

VMblog:  Where can readers learn more about Virtuozzo?

Fine:  More company information and resources can be found at


Published Monday, January 24, 2022 7:33 AM by David Marshall
There are no comments for this post.
To post a comment, you must be a registered user. Registration is free and easy! Sign up now!
<January 2022>