NetApp acquired the private database on Thursday as a service provider Instaclustr. Financial terms of the deal were not made public.
Instagramclusrbased in Redwood City, California, had raised $22 million in venture capital since the company was founded in 2013. The company provides a series of managed cloud services, including a database as a service (DBaaS) for its users, based largely on open source technologies. Some of the managed cloud services offered by Instaclustr include Kafka event streaming, Apache Cassandra and, more recently, PostgreSQL database functionality through the acquisition of Credativ in March 2021.
For its part, NetApp has steadily expanded its capabilities in recent years thanks in large part to a series of acquisitions. In June 2020, Netflix acquired Spot, a provider of cloud infrastructure management tools. The NetApp-owned Spot business unit expanded further last month, with the acquisition of Fylamint for cloud automation. Instaclustr’s technology and business operations will be integrated into the Spot by NetApp business unit once the deal closes, which NetApp says will take place in the first quarter of its 2023 fiscal year.
NetApp moves to DBaaS and the cloud
Analysts have a somewhat positive view of the NetApp acquisition, as it’s an extension of a direction the company has taken in recent years.
NetApp debuted as a storage provider with on-premises systems and added cloud data services. Marc Staime, president of Dragon Slayer Consulting, said the acquisition of Instaclustr is about NetApp’s continued efforts to expand into cloud SaaS offerings. He added that NetApp’s most recent acquisitions have nothing to do with its storage business.
“On-premises storage is a declining, revenue-based market,” Staimer said. “NetApp is branching out into SaaS cloud offerings, and Instaclustr appears to be another cog in that plan.”
Building NetApp’s Cloud Management Vision
Steve McDowell, an analyst at Moor Insights and Strategy, said that from his perspective, NetApp’s acquisition of Instagram is a positive development.
Steve McDowell Senior Analyst Moor Insights & Strategy
“Instaclustr is a great acquisition for NetApp,” McDowell said. “Instaclustr extends NetApp’s cloud management portfolio with proven technology. I applaud this move.”
According to McDowell, NetApp’s strategic vision is to enable IT to manage workloads in the cloud. McDowell noted that NetApp has implemented this vision with several acquisitions in less than two years, all of which focus on cloud management. NetApp’s focus on cloud is paying off, McDowell said, adding that NetApp’s cloud business accounted for nearly 7% of its overall revenue last quarter and was growing at a threefold rate. figures.
“The cloud is a silver lining that helps differentiate NetApp in the crowded and increasingly stuffy storage market,” he said.