Oracle acquires Dyn to expand its cloud portfolio
Earlier in this series, we discussed various aspects of LifeLock’s acquisition by Symantec (SYMC). Participating in the ongoing trend of M&A (mergers and acquisitions), Oracle (ORCL) announced the acquisition of Dyn on November 21, 2016. Oracle did not disclose the financial details of the acquisition.
Dyn provides managed DNS (domain name service) and email delivery services to companies. It detects, manages, and optimizes cloud services and Internet applications that improve the speed of page access and load time.
Dyn was the target of cyberattack
Dyn, founded in 2001, raised $88 million in funding from North Bridge Venture Partners & Growth Equity and Pamplona Capital Management, as reported by Crunchbase. In October 2016, Dyn became the target of a DDoS (distributed denial of service) cyberattack that affected websites such as Twitter (TWTR), Spotify, and Reddit. These DDoS attacks inundate a network with web traffic, disturbing the system. By acquiring Dyn, Oracle is expanding its footprint in the IaaS (infrastructure-as-a-service) space.
Synergy Research estimates show that, in 2Q16, cloud infrastructure service revenue surpassed the $8 billion landmark, with TTM (trailing-12-month) cloud revenue close to $28 billion. Cloud infrastructure service revenue comprises IaaS, PaaS (platform-as-a-service), and the private and hybrid cloud.
Amazon continues to rule the cloud space, with a market share of more than 30%. Amazon is followed by Microsoft (MSFT), IBM (IBM), and Google (GOOG), which collectively held a little more than 20% of the cloud space. Considering the rapid growth, competitiveness, and dominance of the few players in the cloud space, Oracle apparently intends to not only expand its cloud portfolio but also scale up its cloud operations.