Dell Technologies has acquired Israeli startup Cloudify in a deal estimated to be worth between $70 million and $100 million. Dell didn’t make an official announcement regarding the acquisition, which was reported by TechCrunch.
Dell Acquires Cloudify for DevOps Expansion
“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 an Israeli startup specializing in cloud orchestration and infrastructure automation. Cloudify’s tools are used by cloud architects and DevOps engineers to manage containers, workloads and more across hybrid environments, according to the company. Cloudify spun out of GigaSpaces in 2017; the company's founder and CTO, Nati Shalom, was also a co-founder of GigaSpaces. Since then, the startup has raised less than $8 million, 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.
