Oracle buys Ravello, improves cloud offerings capabilities
On February 23, 2016, Oracle (ORCL) announced the acquisition of an Israel-based (ISL) (EIS) cloud computing company, Ravello Systems, whose employees will be integrated into Oracle’s public cloud segment.
Commenting on Ravello’s integration into Oracle’s portfolio, Rami Tamir, CEO of Ravello Systems, stated that “Ravello will join in Oracle’s IaaS mission to allow customers to run any type of workload in the cloud, accelerating Oracle’s ability to help customers quickly and simply move complex applications to the cloud without costly and time-consuming application rewrites.”
Although neither company disclosed the financial details of the deal, Venture Beat considers Ravello Systems to be worth approximately $500 million. According to Ha’Aretz, an Israeli newspaper, Ravello Systems valuation falls in the $400–$450 million range.
Ravello to enable swift migration of workloads and apps
Ravello Systems’ is a virtualization technology developer whose tools enable swift migration of workloads or applications from one environment to other in the cloud. In 2015, Ravello Systems developed “nested virtualization,” a technology that enables a hypervisor to run within a virtual machine so that workloads from VMware (VMW) vCenter environments can be moved to Amazon’s (AMZN) AWS (Amazon Web Services) and Google (GOOG) cloud platforms. In short, Ravello enables companies to take any workload or application environment and transfer it to the cloud.
As of 2015, Ravello Systems, which was founded in 2011, has raised $54 million. Qualcomm Ventures, SanDisk Ventures, Sequoia Capital, Norwest Venture Partners, Bessemer Venture Partners, and Vintage Investment Partners have invested in Ravello Systems.
Now let’s look behind the scenes at what Oracle may be aiming for with its acquisition of Ravello Systems.