NetApp has entered into a definitive agreement to acquire Spot (earlier known as Spotinst), a startup into compute management and cost optimization on the public clouds, to establish leadership in Application Driven Infrastructure.
The transaction is likely to close in the first half of NetApp’s fiscal year, the company said. Though both the companies haven’t disclosed the price of the deal yet, CTECH, citing an anonymous source, pegged the deal at $450 million.
NetApp hopes the acquisition will help its customers save up to 90 percent of their compute and storage cloud expenses, which typically make up 70 percent of total cloud spending, and will help accelerate public cloud adoption.
Together, NetApp and Spot will establish an Application Driven Infrastructure to enable customers to deploy more applications to public clouds faster with Spot’s “as-a-service” platform for the continuous optimization of both compute and storage for both traditional IT buyers with enterprise applications, cloud-native workloads and data lakes.
As Anthony Lye, senior vice president and general manager, Public Cloud Services, NetApp, puts it: “The combination of NetApp’s leading shared storage platform for block, file and object and Spot’s compute platform will deliver a leading solution for the continuous optimization of cost for all workloads, both cloud native and legacy. Optimized customers are happy customers and happy customers deploy more to the public clouds.”
Amiram Shachar, Founder and CEO, Spot looks forward to “joining the NetApp family and building together the future of Application Driven Infrastructure and helping customers to deploy more workloads in the cloud.”