Parallels Web Hosting Sells Equity Stake to Cisco

Parallels web hosting announced it had sold part of the company’s equity to Cisco. Cisco is a networking giant and regularly works with web hosting companies to help both parties benefit for the greater good. The focus is most certainly on cloud hosting products.

Reports coming from the deal indicate Cisco bought a tiny one percent stake in Parallels. Crucially, this gives Cisco a position on the board of directors. Parallels claimed this would “strengthen inter-company collaboration towards accelerating customer adoption of Parallels cloud service delivery products with Cisco cloud and data centre infrastructure solutions.”

With this new purchase, it affirms Parallels commitment to the delivery of cloud services through a specific platform. This is something for which Cisco has a reputation. A more efficient delivery platform would help fuel innovation across the world, and Parallels’ Russian market would also see a significant boost.

Obviously, costs are a major factor and Cisco can benefit from reduced costs if they decide to work closely with this web-hosting provider. Birger Steen, the CEO of Parallels, said in a press release Cisco would benefit from being able to focus on its desire to provide end-to-end solutions for cloud service providers.  In other words, Cisco would build an enhanced portfolio of products.

Parallels have made significant gains around the world in the past few years. It is looking to take advantage of the emerging Asian markets, especially in India. Furthermore, it is becoming a stronger entity in the global web hosting market, and its revenues are increasing. Teaming up with such a large organisation like Cisco can only bring the company benefits in these respects.

Observers predict Parallels will make some major announcements in the next few months in order to unveil its new brand of business and an increased product range.

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