May 10, 2018

Google swallows Velostrata

Velostrata, one of the few leading cloud migration companies, unveiled yesterday the intent to be acquired by Google, one of their partners. This is a superb move by Google with this cloud migration gem.

Velostrata, Israel-based company with 25 employees, helps users to swallow and migrate data and workloads from on-prem to cloud entities such AWS, Azure and GCP and for Google it means migration to GCP with probably very soon the stop of AWS and Azure support.

With $31.5 millions raised, we estimate the deal around $200-300M meaning a multiple between 6 and almost 10. This deal also illustrates the power of Isreali companies and people as the Google blog post was written by Eyal Manor, VP Engr at Google Cloud, small world...

Before Velostrata, Issy Ben-Shaul, CEO and co-founder, already did 2 exits with 2 companies he co-founded: in 2008 Wanova got acquired by VMware and in 2004 he sold Actona to Cisco.

Google finally picks the most recent company as Velostrata was founded in 2014, others such C3DNA was founded in 2013, CloudEndure in 2012, CloudVelox in 2010 and Zerto in 2009 but clearly the battle is on, who's next?

Velostrata is also a competitor of Avere, acquired by Microsoft early this year, as it decouples storage and compute on-prem with data in the cloud. We see also some companies jumping in this multi-cloud wave, there is more than 100 hundreds in that segment, trying to resist to the data gravitation towards giant cloud service providers. This multi cloud segment is a real opportunity but not for everyone and not with basic solutions, I predict that many players will disappear soon...
CompaniesYear founded InvestmentsAcq.AWSAzureGCPOthers
C3DNA2013$2M-YYYOracle Cloud,
IBM Cloud, CenturyLink,
NTT, OpenStack-based
Cloud
CloudEndure2012$18.2M-YYYOracle Cloud
CloudVelox2010$33MVMware (Feb. 2018)YY--
Velostrata2014$31.5MGoogle (pending)YYY-
ZeRTO2009$130M-YY-IBM Cloud
We'll learn more in June with the 27th IT Press Tour as Velostrata chose to join the tour several months ago. Great session in perspective.
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