NetApp announced a deal to acquire cloud optimization startup Spot to build a single platform that will let applications drive infrastructure and unify public cloud compute and storage optimization.
Cloud data storage firm NetAppOpens a new window announced its plans to acquire Israeli compute management and cloud optimization startup Spot, formerly known as Spotinst. Making its third acquisition within months after acquiring CloudJumperOpens a new window and Talon StorageOpens a new window , NetApp clearly intends to offer its customers and clients a comprehensive cloud solution.
Who is Spot?
Founded in 2015, Spot optimizes cloud infrastructure and cloud spends by using analytics and AI technology. The startup claims to reduce cloud costs by 90% by tapping into excess server capacity in data centers operated by public cloud providersOpens a new window such as AWS, Azure, Google Cloud, and Alibaba. These heavyweight cloud companies generate surplus data center capacity – also popularly known as spot instances – and sell it at a discounted price. Spot’s AI-powered software predicts the availability of this excess server capacity and that helps its clients and customers to reduce their cloud spends significantly.
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Why the Acquisition Makes Sense
The short answer is that it’s an era of unprecedented cloud growth, and someone needs to check the costs!
Even before the COVID19 pandemic made cloud deployments to enable remote work the new normal, the Spiceworks Public Cloud Trends in 2019 and Beyond report had already predicted that business workloads and applications running in public clouds will nearly double by 2021.
According to this more recent surveyOpens a new window , with the rapid, often unplanned cloud deployments and SaaS buys necessitated by the current COVID19 related lockdowns, organizations are unsurprisingly struggling to manage their cloud spend.
The survey findings reveal that cloud spend will increase by 47% next year, while 73% of organizations are seeking to optimize their cloud spends.
Not only is the time right for cloud optimization services, an area of strategic focus for cloud storage giant NetApp, this acquisition also fits perfectly with its strategy to establish leadership in Application Driven Infrastructure (ADI).
Anthony Lye, Senior Vice President and General Manager, Public Cloud Services, NetApp sharesOpens a new window , “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.â€
The acquisition will enable customers to deploy more applications to public clouds with Spot’s as-a-Service platform for continuous compute and storage optimization.
Anthony Lye, Senior Vice President and General Manager, NetApp Cloud Data Services Business Unit at NetApp in an exclusive commentari shared with Toolbox said, “The acquisition of Spot will create a combined company able to deliver continuous cost optimization, bringing down the cost of applications, both legacy and cloud native. We are focused on enabling CloudOps to deploy more on the cloud to best serve their customers. With Spot, NetApp will be able to accelerate the adoption of the public cloud.â€
Lye also added that with the acquisition, Spot and NetApp will be in a position to deliver savings of up to 90% on compute and storage – that accounts for more than 70% of the public cloud cost and will be a huge area of interest for IT decision makers across industry.
According to company sources, the transaction is expected to close in the first half of the fiscal year, after obtaining regulatory approvals.
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