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The consolidation of smaller cloud services\u00a0through acquisitions by larger\u00a0could platforms has been a running theme in the enterprise world for a while, and this morning we got a glimpse of what might be the latest development on that front. Israeli publication Calcalist<\/a> is reporting that Microsoft is in talks to acquire Cloudyn \u2014 startup founded in Tel Aviv that\u00a0monitors and optimizes a company\u2019s cloud storage across multiple vendors \u2014 for a price of between $50 million and $70 million.<\/p>\n We\u2019ve reached out to both Cloudyn and Microsoft for comment and have received nearly identical replies in response: \u201cNo comment at this time\u201d from a Microsoft spokesperson, and \u201cAt this time, no comment,\u201d from Cloudyn\u2019s spokesperson. Separately, a\u00a0source close to the situation tells TechCrunch that nothing has been signed so that\u2019s a sign that things could shift, and not happen at all.<\/p>\n To date, Cloudyn, which was founded in 2011, has raised $20.5 million<\/a>,\u00a0according to Crunchbase,\u00a0from investors that include Carmel Ventures, Infosys and Russia\u2019s Titanium (Calcalist notes a higher funding figure of $22.5 million). This\u00a0means a $50 million to $70 million price tag is at least more than double, or nearly four times the money raised, and a 10x multiple on revenues, which Calcalist reports at between $5 million and $7 million a year.<\/p>\n To note, there are other competitors in the same area as Cloudyn,\u00a0including\u00a0CloudCheckr, CloudHealth Technologies and RightScale. These three have raised about three times as much funding so may be coming in at a higher valuation to acquire.<\/p>\n Microsoft is one of the biggest players in cloud services by way of its Azure business, which competes against the likes of AWS from Amazon and Google Cloud, amongst many others,\u00a0vying for\u00a0business from companies who use the platforms not just for storage, but also to run apps and other services.<\/p>\n As network connectivity has become cheaper and faster, and mobile devices with strong computing power but less storage have become the norm, cloud services have exploded.<\/p>\n Cloudyn, in this context, is an interesting business because it has positioned itself as an agnostic but intelligent companion to\u00a0how businesses are actually using cloud services today.<\/p>\n In many cases, we are seeing hybrid deployments spanning both cloud and on-premises offerings, as well as businesses that are using cloud services from a range of providers. (As one notable example, you might remember a story from last year about Apple signing on for \u201csome<\/a>\u201d services with Google, although\u00a0still using AWS and Azure<\/a> for others.)<\/p>\n As we have written previously<\/a> about Cloudyn, the company\u2019s dashboard not only allows companies to monitor how services are being used, but also to optimize this, including increasing capacity when needed.<\/p>\n If this deal goes through, it will be worth seeing how Microsoft implements it. Obviously, the company has a strong mandate in increasing the amount of business on\u00a0its\u00a0Azure platform, which has been growing at a steady pace \u2014 revenues for the the division\u00a0last quarter<\/a>\u00a0were up 93 percent and compute usage more than doubled, with the annualized run rate at $14 billion.<\/p>\n But more significantly, Microsoft has been making a push to promote the idea of multiplatform services \u2014 the message being: Microsoft will be there for you, whereever you happen to be.<\/p>\n (See Microsoft\u2019s app strategy across different operating systems as another example of this, or how the company has implemented Teams, its collaboration product, which clearly favors Microsoft software but does\u00a0not play in an exclusively walled garden, since many companies do not.)<\/p>\n It is here that Cloudyn could be a more useful (and winning)\u00a0addition to the Microsoft portfolio: a way to help Microsoft\u2019s customers monitor how their services are working in the cloud, while perhaps in the process also giving Microsoft\u2019s own services a helpful nudge in the mix.<\/p>\n It helps, too, that Cloudyn itself has been amassing a large client list itself. The company says that it works with \u201cthousands\u201d of companies, including \u201cFortune 500 leaders in all major industry verticals.\u201d<\/p>\n Notably, Cloudyn also is already a Microsoft partner. In March<\/a> of this year, it announced support for Microsoft Cloud Solution Providers \u2014 that is, integrators and other in-the-middle services providers who sit between Azure (or other cloud providers) and enterprises and manage and monitor usage on those platforms on their behalf, perhaps\u00a0tied to\u00a0a specific product at the business that the integrator has implemented. Infosys (which, again, invests in Cloudyn), Westcon-Comstor and Insight are already customers.<\/p>\n There have been a number of other acquisitions in the cloud services space of smaller startups by larger platforms as they continue to build out the services that they are offering to customers to increase what are quite thin margins, and to make services more sticky.<\/p>\n Amazon\u2019s AWS, for example, has acquired several companies in the last year, including Harvest.ai<\/a>, Do.com<\/a>, Biba<\/a> and Thinkbox<\/a>, all to expand what it can offer to businesses on its\u00a0cloud platform.<\/p>\n Featured Image: LIUSHENGFILM<\/a>\/Shutterstock<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"![\"\"](\"https:\/\/tctechcrunch2011.files.wordpress.com\/2015\/10\/shutterstock_327952448.jpg?w=680\")
The consolidation of smaller cloud services\u00a0through acquisitions by larger\u00a0could platforms has been a running theme in the enterprise world for a while, and this morning we got a glimpse of what might be the latest development on that front. Israeli publication Calcalist is reporting that Microsoft is in talks to acquire Cloudyn — startup founded in Tel Aviv that\u00a0monitors and optimizes… Read More<\/a><\/p>\n\n<\/img><\/a>
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