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Israeli Cloud Computing Company Acquired by Amazon for $250 Million

CloudEndure, an Israeli company, confirmed that it had been acquired by AWS, Amazon’s cloud computing unit, for $250 million, Globes reported Thursday.

“CloudEndure is now an Amazon Web Services company. As an AWS Advanced Technology Partner since 2016, CloudEndure has long joined forces to help customers future-proof their businesses. This acquisition expands our ability to deliver innovative and flexible migration, backup, and disaster recovery solutions,” a statement at the company’s website said.

Sources told Globes that the purchase price was $250 million.

Amazon is the world’s top provider of cloud computing services, and currently holds 52% of the market, more than the combined share of its top three competitors. Microsoft has 13% of the market, Alibaba 5%, and Google 3%.

Amazon, Globes assessed, “wants to maintain its advantage over other major cloud computing suppliers and among other things, strives for smoother transfer of data.” The acquisition of CloudEndure, which makes it easier to transfer data from one computing cloud to another, “can help in this quest.”

In January 2015, Amazon purchased its first Israeli company,  AnnaPurna Labs, located in Yokneam. AnnaPurna manufactures chips that are useful building platforms for cloud computing.

“With the talent and intellectual property that it’s gaining through Annapurna, Amazon can develop its own chips and outsource the fabrication to a manufacturer at a fraction of the cost of buying a ready-made processor,” one analyst wrote at the time. “The company apparently sees the resulting savings reach well above $350 million as it continues expanding its infrastructure.”

In December 2016, Amazon founder and CEO Jeff Bezos visited Israel and reportedly met with the management team at Annapurna. At the time, it was reported that Bezos was considering opening a research and development center in Israel.

Currently, Amazon is reported to have 200 employees in Israel. Many of them are working at two R & D centers developing technology for its Alexa shopping platform.

[Photo: Amazon / YouTube ]