MERLION purchased RentSoft and Velvica platform to automatize cloud services distribution

Through the merger, the largest Broadline Distributor MERLION is going to take the lead in the cloud distribution segment.
21 jule 2017
Media: Cnews
Author: Vladimir Bakhur

Cnews

MERLION announced the beginning of integrating into its structure the teams of companies RеntSоft (cloud services distributor) and Velvica (a technological platform for cloud services distribution) teams into its structure. The merge of companies is a part of the active development of VAD segment, which accounts for a significant third in the MERLION activities.

The market is changing and cloud services are considered to be the segment of the future. Digital transformation of clouds affects all companies presented on the market, allowing them to reduce costs, to increase business mobility and to get high-quality products for addressing their problems within minutes. MERLION responds to these market needs by creating a cloud segment that will enable partners to profit from the sale and provision of cloud services to their customers. Thus, cloud distribution is becoming one of the company’s key competencies. Moreover, the tendecies show that all major international distributors have their own technologies and their own team. MERLION understands this and is making investments into this area.

Mikhail Pismenny, CEO of RentSoft: "We have a unique expertise in building the distribution network of cloud services, which we have been developing for 8 years. As a part of MERLION, we will be able to scale our accumulated experience within the activities of Russian distribution market leader. We recognize the enourmous potential of this business in Russia and on the world market."

MERLION notes that they have viewed different alternatives, from developing their own solution to renting or purchasing a ready one. However, none of the options did not provide the desired combination of the rapid market entry, flexible modification and scalability of the solution, experience in the cloud distribution market, proven fault tolerance and reliability, impeccable reputation of the solution and functionality at the level of world leaders.

"The Velvica sales automation platform meets the most pressing requirements for the distribution of cloud services. We are glad that our technology is going to serve as the basis to increase the key competence of the leader in the Russian distribution market. We can see the obvious synergy and we are confident that development of the new MERLION’s area will be successful," says Ivan Volchenkov, Velvica's CEO.

In the result of the merger, the current and future Velvica and RentSoft customers will be able to broaden the range of available products, to accelerate the development of new application functionality, and to decrease transaction costs of maintenance. They will also benefit from qualitatively new marginal business as well as information and technical support of cloud environments.

"The merger with RentSoft and Velvica will add value to the products which are already available in the MERLION portfolio. A shared technological platform is used as basis to create the entire cloud-based eco-system: a marketplace with an online store and real-time provision of services upon request of customers as well as partner programs with the provision of services for them. The client will be able to access his own service for use in a few clicks. Moreover, we will also provide competent technical consulting, support with the addressing specific business issues. It should be noted that the partners who have just entered this business will be offered the services of the MERLION Engineering Technical Center and will be assisted during migration and adaptation of services under new operating conditions," says Igor Solntsev, distribution director of MERLION’s VAD-division. He also adds: "Our platform will be available in several languages, which allows us to look towards development beyond the Russian market."

RentSoft and Velvica teams will join the staff of the VAD-division during the integration of businesses into the MERLION structure.

The financial side and other confidential information of the merger are concealed.