Thursday, 1 December 2016

Oracle’s DYN Acquisition Fits Into Its Goal To Become A Cloud Leader

Last week tech giant Oracle announced that it was acquiring DYN, the popular cDNS provider, for an unspecified amount. Some reports have said that it could be in the region of $600-700 million.

DYN’s cloud-based platform manages and optimises the performance of internet applications and infrastructure by using analytics and intelligent routing. Its Internet performance and Domain Name System (DNS) solution is being used by over 3,500 companies that include top digital brands like Netflix, Twitter and Reddit.  On a daily basis, it handles over 40 billion traffic optimization decisions, making it one of the leading DNS service providers

For Oracle, buying DYN offers an opportunity to challenge the current leaders of cloud computing, Google Cloud.  Oracle currently lags significantly behind these companies in terms of the cloud computing market share, having primarily a portfolio that’s limited to datacentres systems. 

The Enterprises services leader does has a variety of Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) products but adding DYN’s range of scalable services would help Oracle’s customers to get access to cutting edge traffic optimization technologies, filling a gap that might have taken far more time to plug with organic product development.

Oracle has pegged it as a natural extension to its cloud solutions – a service that is the link between hosting data and incoming traffic, resulting in improved metrics for access and user satisfaction for its clients.

This latest acquisition is in keeping with Oracles strategy of buying companies that have noteworthy products in cloud computing – it has in recent times acquired cloud-based applications firm LogFire, cloud access security broker Palerra as well as NetSuite the integrated cloud business software suite.  

If looked at the pattern of these acquisitions, it clearly show the intent of Oracle to move away from its legacy software-led business towards the cloud which in recent times has significantly reshaped how businesses and IT infrastructure are built and run.

It in fact has a stated goal to become the first tech company to reach $10 billion in revenue from cloud business. The NetSuite deal alone is expected to add close to $1 billion in revenue giving a boost to its cloud business.

"With the DYN acquisition, Oracle will be able surely to leapfrog into direct competition with leaders of cloud computing, and make an attempt at taking the leadership position in the market " . 

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