US hybrid cloud data services company NetApp (Nasdaq: NTAP) has announced that it is acquiring Israeli cloud infrastructure management and cost optimization company Spot. No financial details were provided but NetApp will reportedly pay $450 million for Spot.
The company, which was founded in 2015 in Tel Aviv as Spotinst by CEO Amiram Shachar, Chief Architect Lira Polak and Aharon Twizer, has raised $53 million. Investors include Highland Capital, Intel Capital, Vertex, Leaders Fund, Pico Venture Partners, and others.
Spot assists companies in acquiring and managing best-performing cloud infrastructure capacity from companies like AWS, Microsoft Azure and Google Cloud Platform which offer data center services, which always have unexploited capacity that is offered cheaply. Spot develops a serverless platform for applications in different clouds in order to build virtual clouds that allow users to receive an identical experience without any dependence on their cloud provider.
Spot built a system that allows customers to save an average of 80% on their cloud computing costs. The technology lets companies identify availability on cloud computing resources, and transfer the customer transparently between different services before being rejected because capacity has returned to being used by the supplier.
Shachar said, "Spot was founded with a vision to revolutionize the way companies consume cloud infrastructure services, using analytics and automation to deliver the most reliable, best performing and most cost-efficient infrastructure for every workload on every cloud. We look forward to joining the NetApp family and building together the future of Application Driven Infrastructure and helping customers to deploy more workloads in the cloud."
NetApp's Israel Development Center was founded in 2008 following the acquisition of software storage solutions company Onaro for $130 million. Last year, NetApp acquired Israeli data protection company Cognigo for $70 million and merged its employees into the development center.
NetApp SVP and general manager Public Cloud Services Anthony Lye said, "In today’s public clouds, speed is the new scale. However, waste in the public clouds driven by idle resources and overprovisioned resources are a significant and a growing customer problem slowing down more public cloud adoption. The combination of NetApp’s leading shared storage platform for block, file and object and Spot’s compute platform will deliver a leading solution for the continuous optimization of cost for all workloads, both cloud native and legacy. Optimized customers are happy customers and happy customers deploy more to the public clouds."
Published by Globes, Israel business news - en.globes.co.il - on June 4, 2020
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