Amazon struck a blow against Google by buying a tiny Israeli cloud company for a reported $200 million-plus

  • A tiny Israeli company called CloudEndure confirmed on Thursday that Amazon Web Services has acquired it.
  • Reports indicate that Amazon paid between $200 million and $250 million for the startup, which has raised $18 million in its seven-year lifetime.
  • Industry experts say this was a big miss for Amazon’s arch competitor, Google.

Tiny Israeli company CloudEndure confirmed on Thursday that Amazon Web Services has acquired it.

Israeli news outlet Globe reported that Amazon paid $250 million for the startup, though Crunchbase estimates the price at closer to $200 million.

CloudEndure, founded in 2012, has raised $18 million from investors including Dell, VMware, and Israeli venture-capital firm Tamar Ventures. So assuming those reported prices are accurate, investors will see a hefty return on CloudEndure.

Word of the deal leaked over the last week, setting the industry gossip mill abuzz — word on the street is that this represents a brilliant coup on the part of AWS that should frustrate the heck out of Google.

Read more: Amazon’s latest cloud product is dangerous for Cisco and Dell but really scary for Hewlett Packard Enterprise, analyst says

CloudEndure makes a tool that lets companies easily back up and move their data and apps from their own private servers and data centers to the cloud, without downtime.

Amazon Web Services CEO Andy Jassy.
AWS re:Invent/Business Insider

It works with AWS, Google Cloud, Microsoft Azure, and Amazon’s newest bestie, VMware.

CloudEndure isn’t the only tool that does this. Amazon has its own in-house tool and has created a lot of out-there hardware for cloud migration, including a computer box called Snowball Edge that vacuums out data from servers to be shipped back and uploaded in AWS and a semitruck called the Snowmobile that does the same.

There are also migration tools developed by Deloitte, one of AWS’s big cloud-consulting partners, and tools from other startups, including CloudVelox, Racemi, and Attunity.

So, you can’t help but ask, why would Amazon pay a premium for CloudEndure?

CloudEndure happens to be the partner that powers Google Cloud’s free migration service. So pointed out Peter Groucutt, a managing director of Databarracks, a consultant that helps companies with their data backup and transfer needs. Groucutt told the Computer Business Review that he was surprised Google didn’t buy CloudEndure.

“Although CloudEndure had relationships with all three of the major hyperscale, public cloud providers, it seemed that it’s most strategic was with GCP,” Groucutt told CBR, referring to the Google Cloud Platform. “GCP’s cloud migration service is powered by CloudEndure.”

Google’s own documentation backs this up. In one of Google’s best-practices guide for helping companies move their apps and data into its cloud, there’s a large section that discusses using CloudEndure.

So AWS snatched CloudEndure away from Google. However, a Google spokesperson said that in May 2018, Google acquired a cloud-migration company for itself, Velostrata, and that Google Cloud now offers its own migration service, free to use for those putting data into Google Cloud, and it is currently available.

CloudEndure has been on Amazon’s radar for at least two years. Back in February 2017, CloudEndure was one of the companies that presented at the annual AWS Sales Kick-Off event, where Amazon shares goals and strategy with salespeople and key partners for the coming year.

In the formal announcement of the acquisition on Thursday, CloudEndure didn’t say much. It specifically did not promise that it would continue to help companies migrate their data into Google’s cloud — or Microsoft’s, for that matter. It simply said that the acquisition “expands our ability to deliver innovative and flexible migration, backup, and disaster recovery solutions.”

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