Israeli financial publication Globes first reported on the deal on Monday, citing anonymous sources who told the outlet it carried a price tag of $250 million. Since then, other publications have reported a deal closer to $200 million, although neither Amazon nor CloudEndure have yet confirmed anything about the buy.
Based in the Tel Aviv suburb of Ramat Gan, CloudEndure provides disaster recovery for cloud customers when unforeseen events like weather phenomena, cyberattacks or political upheaval interfere with cloud backup, TechCrunch reported. To avoid such interruptions, CloudEndure provides continuous backup and migration between clouds and private data centers.
Founded by Ofer Gadish, Ofir Ehrlich, Gil Shai and Leonid Feinberg in 2012, investors have included Dell Technologies Partners, Infosys and Magma Venture Partners, among others, the Times of Israel notes, and the company has raised just over $18 million in that time. Haaretz noted that last month, Indian tech giant Infosys announced it had signed an agreement to divest its shares in CloudEndure for around $15.3 million.
The company already partners with Amazon Web Services (AWS) but also works with Microsoft cloud-computing company Azure; it's unclear what impact a purchase by Amazon would have on CloudEndure's partnerships.
AWS gives Amazon an absolute majority of market share in the world's cloud services, providing 52 percent of all cloud services worldwide. Acquiring CloudEndure will help it compete further with challengers like Microsoft, Alibaba and Google.
"So much information is sitting in the cloud that you need backups and regions to make sure you have seamless recovery in the event of a disaster," Ray Wang, founder and principal analyst at Constellation Research, told TechCrunch. "If you have multi-cloud and want your on-prem data backed up, or if you have backup on one cloud like AWS and want it on Google or Azure, you could do this today with CloudEndure. That's why I'm curious if they'll keep supporting Azure or GCP [Google Cloud Platform]."
If it goes through, the deal would be far from Amazon's largest. Back in 2015, it bought Annapurna Labs for $360 million, which now serves as the center of AWS' chip development.