• Tech - News - Tech Companies
  • Updated: January 26, 2023

Cloud Orchestration Startup, Cloudify, Now Acquired By Dell

Dell is set to beef up its cloud services with its offerings in DevOps with its recent acquisition of Cloudify.

Cloudify, an Israeli startup that has built a platform for cloud orchestration and infrastructure automation, is set for purchasing by Dell. 

Cloudify’s tools are popular amongst cloud architects and DevOps engineers who use them to manage containers, workloads, and more across hybrid environments.

Although the details of this acquisition are yet to be authenticated by Dell, however, the brand recently published documents with the SEC pertaining to some of the share awards for Cloudify employees. 

“Dell Technologies announced that it has completed the acquisition of Cloudify,” the spokesperson said.

“This transaction allows Dell to continue to innovate our edge offerings.”

It's not yet clear why Dell is not disclosing the value, or any other details, of the acquisition.

Unofficial sources conclude that the deal is valued at around $100 million.

This latest development is a solid exit for Cloudify. As a startup, Cloudify was originally spun out from GigaSpaces in 2017 (Nati Shalom, the founder, and CTO of Cloudify, was also a co-founder of GigaSpaces). 

Cloudify has several strategic backers on its cap table amongst whom are VMware, KPN, and Intel.

Ever since acquiring Exanet in 2010, Dell has been active in Israel, resulting in an R & D operation in the country. 

Relatively speaking, the acquisition of Exanet for about $12 million was for a song (Exanet was actually bankruptcy-bound then)

It appears that all along, Dell had been looking for acquisitions in this space.

Cloudify, on the other hand, is known for pitching in regards to development engineers grappling with managing network and data infrastructure at scaling organizations. 

With its platform, Cloudify helps those DevOps engineers integrate and manage different products they may already be using as well as automate the process of them working together.

Products in this bouquet may include Ansible, Terraform, Kubernetes, ServiceNow, Jenkins, Azure, ARM, and TOSCA amongst others.

Avihai Michaeli, a startup advisor in the country, confirms how Dell has long had its eye on Cloudify whose verticals tended to conflict with those of Dell. 

According to Michaeli, “Cloudify was challenging Dell in more ways than one. For example, it competed with Dell’s Enstratius.”

With its current market cap at $29 billion, Dell will be reporting results for Q4 at the beginning of March. 

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Eben Duru
Eben Duru

 My name is Eben and I am from Lagos, Nigeria. I am currently a writer at AllNews Nigeria. I’m...

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