California-based cloud data services company NetApp announced on Wednesday that it entered into a definitive agreement to acquire the US-Israeli company Spot.io, also known as Spotinst, to “establish leadership” in cloud management and infrastructure tools.
NetApp did not disclose the financial terms of the deal but CTech by Calcalist reported the transaction value at some $450 million, citing an unnamed person with knowledge of the deal.
Founded in 2015, Spot.io helps businesses manage their cloud workloads across different data centers, slashing customers’ computing costs by tapping into excess server capacity in data centers operated by Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba, among others.
Spot employs some 150 people in San Francisco, New York, and Tel Aviv. The company has previously raised $52 million from investors including Intel Capital, Vertex Ventures, PICO Venture Partners, and Highland Europe. Clients of Spot.io include Moovit, Ticketmaster, Wix, Sony, Samsung, IBM, and Intel, according to the company site.
NetApp said that together with Spot.io, the two companies are building an Application Driven Infrastructure (ADI) that will translate an application’s workload patterns and optimize performance level and cost for storage and compute. The ADI “will help customers save up to 90 percent of their compute and storage cloud expenses, which typically make up 70 percent of total cloud spending, and will help accelerate public cloud adoption,” NetApp said.
“We are entering into this partnership because we hold the same vision: helping application owners embrace and take advantage of the full power of the cloud,” wrote Spot co-founder and CEO Amiram Shachar in a blog post after the deal was announced.
“In today’s public clouds, speed is the new scale. However, waste in the public clouds driven by idle resources and overprovisioned resources is a significant and a growing customer problem slowing down more public cloud adoption,” said Anthony Lye, senior VP and general manager, Public Cloud Services, NetApp, in a company statement. “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.”
“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,” said Shachar in the statement. “We look forward to joining the NetApp family and building together the future of Application Driven Infrastructure…”
The transaction is subject to regulatory approvals and is expected to close in the first half of the next fiscal year.