Dell makes an acquisition to bolster its cloud services business, particularly its DevOps offerings: the company buys Cloudify, an Israeli startup that has built a platform for cloud orchestration and infrastructure automation. Cloudify’s tools are used by cloud architects and DevOps engineers to manage containers, workloads, and more. in hybrid environments.
Dell hasn’t officially announced the acquisition, but after sources contacted us, we noticed that Dell had in fact released filings with the SEC regarding some of Cloudify’s employee stock awards. A spokesperson also confirmed the purchase to TechCrunch.
“Dell Technologies announced that it has completed the acquisition of Cloudify,” the spokesperson said. “This transaction allows Dell to continue to innovate our industry-leading offerings. »
Dell is not disclosing the value, or any other details, of the acquisition. Our sources tell us the case is valued at around $100 million.
That would make it a solid release for Cloudify. The startup was originally created from GigaSpaces in 2017 – Nati Shalom, the founder and CTO of Cloudify, was also a co-founder of GigaSpaces. Since then, the startup has raised less than $8 million, according to data from PitchBook. It has several strategic backers on its capitalization table: VMware, KPN, and Intel were all investors in Cloudify.
Dell has been active in Israel since acquiring Exanet in 2010, which formed the basis of an R&D operation in the country. This acquisition was for a song, relatively speaking: Exanet was bankrupt at the time and the deal closed for $12 million.
From what we understand, Dell had been looking for acquisitions in this space for some time.
Cloudify’s pitch is aimed at engineers who are struggling with managing network and data infrastructure in scale-out organizations: it provides a platform that enables these DevOps engineers to integrate and manage different products that they may already use: Ansible, Terraform, Kubernetes, ServiceNow, Jenkins, Azure, ARM and TOSCA among them – and automate the work of their collaboration.
Avihai Michaeli, a startup adviser in the country, tells me that Dell had long had its eye on Cloudify – which has (in addition to its strategic backers) big names like AT&T, Cox, Accenture and many more. as customers.
“Cloudify challenged Dell in more ways than one,” he said. “For example, it was competing with Dell’s Enstratius.”
Dell publishes its results for the fourth quarter in early March. Its market cap is currently $29 billion.