Report: Microsoft In Talks To Acquire Cloud Cost Optimization Vendor Cloudyn


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Microsoft is negotiating a deal to purchase Cloudyn, a vendor of software that optimizes cloud spending, according to a report published Thursday on Israeli business site Calcalist.

The price being discussed for the company falls between $50 million and $70 million, the report said.

The startup founded in 2011 near Tel Aviv, Israel offers a cloud-based platform for monitoring cloud deployments and optimizing the cost of that infrastructure.

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Cloudyn currently partners with Microsoft to support its Azure public cloud, as it does Amazon Web Services, Google Cloud Platform and OpenStack-based infrastructure.

The startup initially developed those non-Microsoft capabilities first—only adding Azure support after receiving a Series A funding round of $4 million from Titanium Investments near the end of 2014.

Cloudyn's tools provide insights into usage trends and cost-allocation coupled with custom actionable recommendations to enhance performance and reduce spending.

Microsoft declined to comment for this story, and Cloudyn has not yet responded to a comment request.

"We are seeing numerous acquisition rumors happening as the cloud vendors assess what capabilities they want to add to their platforms and whether it makes sense to build them or buy them," said Meredith Knowles, director of partner development at Cloud Technology Partners, a Boston-based partner of several cloud providers, including Microsoft.
 
Cloudyn, she said, offers "one piece of an overarching cloud ecosystem and as such, it comes as no surprise that they are being looked at.”
 
While Cloudyn's solution is meant to work across several providers, that fits in with a trend of individual vendors acquiring multi-cloud solutions, trying to make overall cloud adoption easier for enterprise clients.
 
"Roadmaps and integration services tend to favor the proprietor’s cloud, but ubiquitous toolsets are good for everyone," Knowles told CRN.
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