Oracle buys Israeli startup Ravello Systems for $500M


Cloud computing giant Oracle announced on Monday that it acquired Israeli startup Ravello Systems, which develops solutions to run applications smoothly in the cloud, for an estimated sum close to $500 million. Following the acquisition, Ravello’s team will join Oracle’s new development center in Israel, which will focus on cloud computing. This development center will also be part of Oracle’s existing Israeli R&D center, which was established after they purchased Demantra in 2006.

Since its founding in 2011, Ravello had raised $54 in total funding from Qualcomm Ventures, Sequoia Capital, SanDisk Ventures, Norwest Venture Partners, Bessemer Venture Partners and Vintage Investment Partners.

Two founders. Four exits

This is the fourth and likely largest acquisition for Ravello’s co-founders, serial entrepreneurs Rami Tamir and Benny Schnaider. Before this exit, they sold Qumranet to Red Hat for $115 million in 2008, P-Cube to Cisco for $200 million in 2004, and PentaCom Ltd. to Cisco for $118 million in 2000.

Throughout this time, Schnaider was also involved in two others startups, B-hive and Traffix, which were sold to VMware and F5 for tens of millions of dollars. Following this exit, both entrepreneurs will likely join an elite category of Israelis who have sold more than $1 billion worth of tech startups.

Testing the cloud

Ravello’s unique solution provides new ways for developers to test their applications seamlessly while in the public cloud. In the past, it was not feasible to test various deployments in the public cloud because it required various modifications to the applications’ code so that they could run correctly within a public cloud infrastructure, which was also a costly process. With Ravello’s technology, companies can deploy applications in the cloud without changing any code.

The idea behind Ravello was that it could help enterprises switch to cloud computing by moving all VM applications and their environments to the public cloud, such as Amazon Web Service EC2 or Google Cloud Platform, without any code modifications whatsoever. In other words, Ravello enables companies to test products before they release them to their clients. According to the company, their solutions enable enterprises to test and deploy products in a much safer, secure, and more realistic environment to the one in which customers will interact with products when they go to market.

In a statement published on Ravello’s company blog, Rami Tamir said, “We believe this agreement will accelerate our ability to reach more customers, deliver more value, and enhance our technology at an accelerated pace in order to better serve you.” He emphasized that business would go on as usual, saying, “Rest assured, Ravello’s service will continue ‘as is.’ In the coming months, we will be working to continue enhancing our value to you and we are looking forward to developing new products and services enabled by this combination.”

Ravello, which is headquartered in Palo Alto, operates an R&D center in Ra’anana and employs more than 60 people.

Laura Rosbrow-Telem translated the original post from Hebrew. 


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