Microsoft is at the forefront of the cloud space, particularly with its enterprise solutions. The firm’s Azure cloud platform alone stands out as a formidable provider of business cloud services. It gives the likes of Google Cloud and Amazon Web Services a run for their money. But the Israeli start-up that the Windows maker is about to secure will offer something immensely useful. Through Cloudyn, Microsoft inherits deeper insight into what really makes other cloud vendors tick.
It is not hard to see how society’s growing dependence on the internet makes convenient online storage and service solutions a gold mine industry. The cloud scene is saturated with competitors offering internet-enabled products, teaming with budding rivals offering that which you need from wherever you feel best to access it. Adopting smaller yet promising rivals is a sure way to grow expertise and consumer bases while eliminating the competition.
Such moves are not uncommon when it comes to cloud services either, and Thursday morning saw word about Microsoft’s latest bid to bolster Azure.
Cloudyn is a start-up that is making headway in the realm of cloud services. Cloudyn operates primarily from, Tel Aviv. Cloudyn makes its mark in the remote services segment by analyzing and optimizing the cloud storage and cloud services used by companies. This often spans across a wide range of vendors too. The firm offers an analytic edge that is growing in popularity and Microsoft (NASDAQ:MSFT) is alleged to want this Israeli start-up as its own.
Cloudyn will undoubtedly prove to a powerful asset. The business puts itself in a position where it gets to see, analyze and offer intelligence on how cloud service vendors receive their business, and how companies make use of cloud vendors. All this in the name of cloud optimization. Microsoft is said to be offering around $50 million to $70 million for the firm.
The Tel Aviv start-up has managed to secure a massive client base since it landed on the scene. Cloudyn reports that it works with thousands of companies including several leading firms of the Fortune 500. Founded in 6 years ago, Cloudyn has raked in at least $20.5 million. This is according to sources claiming the start-up has avid investors ranging from Titanium (a Russian industrial juggernaut), Carmel Ventures and Infosys.
Microsoft is still cloudy about Cloudyn
Neither Microsoft nor Cloudyn have confirmed the mergers, both claiming to have comment “at this time”. TechCrunch suggests that the deal is yet to be made official, reporting that plans could still change for Microsoft.
Cloud services are on the rise due to growing internet-enabling infrastructure. Network connections are becoming cheaper to acquire and are gaining more speed. Mobile gadgets come with more computing power than ever before, while limited storage remains the bane of modern computing. Few other companies appear to understand this cloud more than Microsoft Corporation, which is making several moves to corner cloud subscriptions.
“There [only] are a few companies that are at the cutting-edge, Nadella tells the AFR last year “in whichever way you look at it.” The MSFT boss strongly believes that his company makes that cut. Microsoft under Nadella is focused not so much on building consumer hardware as it is in creating cloud and software solutions for hardware users.
The chances of Microsoft (NASDAQ:MSFT) and Cloudyn coming to an agreement are unclear. it will be interesting to see how the Azure maker uses of the Israeli form’s expertise should the merger come through.