The deal includes intellectual property and the Odin brand. Odin publishes a range of cloud applications that includes web server management, server virtualisation, provisioning and billing automation. It is used by 10,000 service providers who sell applications to their small and medium sized business clients. According to Parallels around the services reach a subscriber base of 10 million SMEs.
IT distributor Ingram Micro has been a customer of Parallels since 2014 when it began using the Odin system as a cloud distribution service, allowing it to repackage applications to its channel partners who then white label them, resell them or manage them for clients. Ingram’s partner base includes resellers, managed service providers, system integrators and hosting provider customers.
Ingram branded its Odin-enabled cloud brokering service as the Cloud Marketplace.
The sell off will enable parent company Parallels Holdings to concentrate on its core business and divest itself of a commodity, according to its CEO Birger Steen. “Now we can sharpen our focus as a company and continue to deliver market leading products under the Parallels, Plesk and Virtuozzo brands.”
Parallels’ solutions business unit will continue to operate as a standalone company. Its Plesk web management business unit will operate as a standalone company under the Plesk brand. The Virtuozzo business unit, which develops container virtualization technology, will operate as a standalone company. All three business units will continue to be owned and controlled by Parallels Holdings Limited.
It looks good for Ingram but not for Parallels, according to one analyst. “I was surprised when Parallels spun off Odin as a separate company, I felt it had some real value,” said Quocirca analyst Clive Longbottom, “Ingram looks like it has gained control of a system that helps it deliver its own products to the channel and allow it to become a cloud aggregator.”
Where this deal leaves Parallels is more of an issue, said Longbottom. “It missed the boat when Docker made more noise on containers, leaving Virtuozzo in the mud. It has not managed to make enough noise for people to know that it is there, trusting instead on word of mouth and just being known. I think that Ingram comes out well from this. Meanwhile, watch out for others buying up the rest of Parallels.”