Dell has acquired Israeli startup Cloudify for an estimated $70 million to $100 million. Dell made no official announcement about the acquisition, which was first reported by TechCrunch.
“Dell Technologies announced that it has completed the acquisition of Cloudify,” a Dell spokesperson said of the deal. “The transaction allows Dell to continue to innovate our edge offerings.”
Cloudify is a startup based in Israel that specializes in cloud orchestration and infrastructure automation. According to the company, Cloudify’s tools are used by cloud architects and DevOps engineers to manage containers, workloads, and more across hybrid environments. Cloudify was spun out of GigaSpaces in 2017; Nati Shalom, the company’s founder and CTO, was also a co-founder of GigaSpaces. The startup has raised less than $8 million since then and is backed by VMware, KPN, and Intel.
The acquisition will beef up Dell’s Cloudify’s DevOps, cloud-native and infrastructure automation capabilities. Cloudify’s platform pitch lets DevOps engineers integrate, automate and manage their product portfolios more easily, including tools like Ansible, Terraform, Kubernetes, ServiceNow, Jenkins, Azure, ARM and TOSCA.
Dell’s ARR Growth
Dell continues to grow its annual recurring revenue. Dell’s Q3 of 2023 financial results included:
- Recurring revenue of approximately $5.4 billion, up 11% year-over-year.
- Overall revenue of $24.7 billion, down 6% compared to the corresponding quarter last year.
- Record operating income of $1.8 billion — up 68% compared to Q2 of fiscal 2022.
- Areas of strength included servers and networking ($5.2 billion, up 14%) and storage ($4.4 billion, up 11%).
- Areas of weakness involved PCs, where revenues fell 17% to $13.8 billion.
