Tech giant, Microsoft, has signed a definitive agreement to acquire an Israeli cloud startup, Cloudlyn. The startup claims to help enterprises and managed service providers optimize investments in cloud services. This does not come as a surprise as a couple of months back there were speculations by Israeli press that Microsoft was in talks to buy a Cloudyn. Microsoft at that time acquired Israeli AI security company Hexalite for $100 million.
Based in Tel-Aviv, Cloudyn states to provide cloud monitoring & optimization SaaS for actionable business insights and recommendations including sizing, location, and pricing optimization capabilities. It also offers visibility and optimisation tools for enterprise customers and MSPs. The acquisition of a cloud billing and management platform may help Microsoft ramp-up the competition with Amazon Web Services and Google Cloud.
According to an official blog by Jeremy Winter, Director, Program Management, Azure Security and Operations Management, Microsoft, it is critical that customers have access to enterprise-grade management capabilities for detailed visibility into their Azure consumption, cost and performance in order to stay within budget and ensure business success.
“This acquisition fits squarely into our commitment to empower customers with the tools they need to govern their cloud adoption and realize the strategic benefits of a global, trusted, intelligent cloud. Cloudyn gives enterprise customers tools to identify, measure and analyze consumption, enable accountability and forecast future cloud spending.”
Sharon Wagner, CEO, Cloudyn, wrote a message to his employees stating that the company will be joining Microsoft and their solution will be incorporated into Microsoft’s product portfolio, offering customers multi-cloud management, security and governance solutions.
Cloudyn has been a Microsoft partner and has been supporting cost management for Microsoft Azure and other public clouds, helping customers improve their cloud efficiency. Cloudyn customers have been able to optimize their cloud services usage and costs through automated monitoring, analytics and cost allocation.
Media reports claim that the startup has raised $20 million till date from investors such as RDC, Carmel Ventures, Titanium, Viola Credit and Infosys. Though the details of the acquisition deal were undisclosed, a report by TechCrunch states that the purchase is somewhere between $50 million to $70 million.
This would be Microfot’s second acquisition this year of an Israeli company, before Hexalite and Cloudyn, the company picked up three security companies namely, Aorato in 2014, Secure Islands for about $80 million and Adallom for a reported $320 million, both in 2015.