Microsoft Corp. may be looking to boost its cloud tools by acquiring Israeli startup Cloudyn Software Ltd. for $50 million to $70 million, according to a report by Hebrew language news publication Calcalist.
Founded in Tel Aviv, Israel in 2012, Cloudyn offers automated software-as-a-service solutions that give big businesses tools to monitor, analyze and organize their cloud applications. Speaking to theCUBE in 2015, Cloudyn Chief Executive and co-founder Sharon Wagner (pictured) said Cloudyn’s core service is to “look at the way your application is running in the cloud and optimize its performance.” Cloudyn said it has “thousands of global customers,” including a few high-profile clients such as Hewlett Packard Enterprise Co., Ticketmaster Entertainment Inc. and others.
Initially, Cloudyn supported only OpenStack behind the corporate firewall, but thanks to the funds it has raised over the years, the startup has expanded into other platforms, including Microsoft Corp.’s Azure Private Cloud.
Since then, Cloudyn has continued to expand its support for Microsoft. In March, the company announced that its platform would support the Microsoft Cloud Solution Provider Program, allowing Cloudyn users to manage and monitor their customers’ Azure deployments. Cloudyn also supports deployments on some of Microsoft’s biggest cloud competitors, including Amazon Web Services, but this support could actually be good for Microsoft, as it may be a way to push Microsoft’s services for users by showing how their apps might stack up on Azure.
If the deal with Microsoft goes through, Cloudyn would be the latest in a long string of investments that Microsoft has made into the cloud over the last few years, such as the recent acquisition of application container toolmaker Deis Inc. So far those investments appear to have paid off.
In January, Microsoft reported a staggering growth of 95 percent in its cloud division. Chief Executive Satya Nadella said the company’s commercial cloud annualized run unit rate exceeds $14 billion and is on track to reach $20 billion by 2018.
Both Microsoft and Cloudyn declined to comment on the potential acquisition, but a source told Techcrunch that no deal has been signed yet.