UPDATED 11:17 EST / NOVEMBER 21 2016

CLOUD

Oracle acquires Dyn, the domain name service hackers attacked last month

Oracle Corp. added another weapon to its cloud arsenal today by acquiring New Hampshire-based Domanin Name System provider Dyn.

Otherwise known as Dynamic Network Services Inc., the company has thousands of customers, including household names such as Twitter Inc., Netflix Inc. and National Geographic. Oracle didn’t divulge the terms of the deal, but Dyn’s sizable client base and the fact that it has raised $88 million from investors likely puts the price tag in the nine-figure range. Dan Primack, the former editor of Fortune’s venture capital newsletter, cited a source as saying that the deal is worth more than $600 million.

The acquisition comes a month after Oracle bought a software as a service startup called Palerra Inc. that was founded by two of its former executives, yet another sign of its focus on building its cloud portfolio.

The latest acquisition buys Oracle a platform for handling one of the most fundamental aspects of running a web service: processing browser requests. Organizations can rely on Dyn to translate URLs into the IP addresses that their applications employ at the backend instead of having to deploy in-house DNS servers. The company also provides value-added features such as an automated failover mechanism that can help make cloud infrastructure more resilient against outages.

Dyn isn’t immune to downtime by any means, however, as a recent distributed denial of service attack demonstrated all too well. The attack took down sites and services such as Twitter, Amazon.com, Reddit, Spotify and Etsy for the better part of a day on Oct. 21.

But that doesn’t diminish the significance of today’s deal to Oracle. The acquisition should make the company’s public cloud more competitive against Amazon Web Services and other rivals that already offer DNS hosting. Plus, the purchase will give the enterprise technology giant a foot in the door of many Dyn customers who could potentially be receptive to upselling efforts.

Oracle is marketing its cloud platform as a “one-stop shop” for infrastructure and application development services. This value proposition is a threat not only to the likes of AWS but also Dyn’s niche rivals in the DNS hosting market, which can expect much more competition now that its service is moving under the wing of one of the world’s top enterprise technology suppliers. CloudFlare Inc., a leading contender in this segment, has been actively bolstering its platform recently in a bid to stay on ahead of the pack.

Image courtesy of Dyn

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