Oracle Acquires Ravello Systems for $500 million
Oracle has acquired Israeli startup Ravello for $500 million and was confirmed Monday. Ravello Systems develop tools that run enterprise workloads in public cloud environments. With the said acquisition, Ravello will become a part of Oracle's cloud business that is hoping to take on Google, Amazon, IBM and Microsoft by allowing corporate users to rent computers, storage and networking.
Rami Tamir, Ravello CEO confirmed the takeover and in a statement said on the company's website that, "I am thrilled to share that Ravello Systems has entered into an agreement to be acquired by Oracle. The proposed transaction is subject to customary closing conditions. Upon closing of the transaction, our team will join the Oracle Public Cloud (OPC) organization and our products will become part of Oracle Cloud. We believe this agreement will accelerate our ability to reach more customers, deliver more value, and enhance our technology at an accelerated pace in order to better serve you," reports Arutz Sheva.
Business Insider has named Ravello as one of The 27 Hottest Israeli Startups of 2015. In Israel and US, Ravello had 70 workforce and 'thousands of active users' as of September. To date, the Israeli company had already raised $54 million in venture capital funding. It had partnerships with Google, VMware and Amazon to make it easy for companies to create 'dev\test' labs on their clouds.
Oracle is a little bit behind the cloud wars. It has been concentrating on introducing cloud versions of its famous business apps and just lately has a direct competition with Amazon. The company needs its own cloud and needs to stand out from the rivalry if it hopes to hinder other companies from directing to Amazon, according to Business Insider.
Ravello began in 2011 and was based in Palo, California which is not far from Redwood City where Oracle headquarters are situated. Its customers include Brocade, SUSE, Red Hat, Symantec, and Arista. Ravello's investors include Bessemer Venture Partners, Qualcomm Ventures, Sequoia Capital, Vintage Investment Partners, Sandisk Ventures, and Norwest Venture Partners, based on the Venture Beat report.
Although Oracle acquired Ravello, the latter's service will remain available from Oracle as it tries to increase its cloud business and takes on the likes of Microsoft Azure and Amazon Web Services.