EMC Snaps Up OpenStack Startup Cloudscaling

by Ostatic Staff - Oct. 14, 2014

As the OpenStack cloud computing platform continues its disruptive path through organizations of all sizes everywhere this year, it is also giving rise to M&A activity. Now, enterprise storage hardware titan EMC announced that it is buying Cloudscaling.

Cloudscaling was an early startup focused on the OpenStack scene, and its founder and chief executive Randy Bias is considered an OpenStack guru.

The Cloudscaling deal is only one of several notable acquisitions surrounding OpenStack to take place recently. Cisco bought OpenStack startup company Metacloud, and Hewlett-Packard bought Eucalyptus Systems, which has been steadily warming up to OpenStack.

As enterprises everywhere are adopting OpenStack and building infrastructure around it, Cloudscaling promises to help keep some of them buying EMC's hardware and tools to complement their deployments. 

Bloomberg has reported the following regarding the transaction:

"The deal is for less than $50 million, according to people with knowledge of the situation, who asked not to be identified because the transaction isn’t public...Cloudscaling helps companies manage large numbers of computers that are linked together by OpenStack, a free open-source technology developed by companies including EMC and Oracle Corp. Cloudscaling also designs technology to make it simple to connect computers running OpenStack to so-called public clouds, operated by providers like Amazon.com Inc. and Google Inc."