"We are truly excited about the potential for Hawke's Bay, Manawatu and beyond, and this partnership helps provide a leap forward in our plans and strategy to be a leader in cloud thinking and delivery in the mid-market."
All existing 35 staff members in the local Hastings-based office would remain in place.
"We remain fully locally owned and operated, with operations both here and in Manawatu.
"The Instillery merger and brand partnership brings an incredible opportunity for our local and new clients to access some of the best cloud technology capability and expertise that NZ has to offer.
"We fully expect to expand to employ more within the region, maintaining a focus on supporting and helping local customers compete on a global scale, and to increase the velocity of their business with effective accelerated use of cloud technologies."
A range of new cloud services, including SD-WAN, multi-cloud and cloud security service lines, would be available to customers over the coming months.
The Instillery founder Mike Jenkins, Ross' son, said the merger would help unleash "new tech innovation".
"As the market evolves and more companies recognise the undeniable benefits of all forms of cloud tech, we've worked hard on how we can best bring that to all of our current and new customers at scale," he said.
"Joining forces with the team at VO2 gives us solid experience and will offer clients a best-in-class offering wherever they are on their cloud journey."
The new-look Instillery will count national giants Fonterra, Auckland Council, Vector, Sanford, Powerco and TSB Bank amongst their enterprise clientele, along with a wide variety of leading mid-market customers that include Craggy Range and Bostock New Zealand.
The merger also creates a new technology solution group with more than 100 staff spread across offices in Auckland, Hamilton, Tauranga, New Plymouth, Hastings and Palmerston North.