Oracle buys enterprise workload manager Ravello Systems for a reported $500m

OracleOracle has disclosed details of its acquisition of workload management specialist Ravello Systems. No financial terms were revealed over the deal, but sources familiar with the company value the sale at $500 million, according to venture capital news site Venturebeat.

Ravello, which makes tools that help enterprises manage their enterprise workloads in the cloud, signed an agreement to be acquired on February 22 with all employees joining Oracle’s Public Cloud division.

The new management features will help Oracle’s Public Cloud beef up the performance of its computing, storage and networking workloads. Oracle has launched a number of initiatives aimed at positioning its cloud business more favourably against market leaders Amazon Web Services (AWS) and Microsoft Azure.

In February BCN reported how Oracle had added new Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) cloud offerings from its Slough data centre, which currently caters for 500 UK and global customers. Clients from both the private and public sector are being promised tailored versions of the new services, which include Oracle’s Database, Dedicated Compute, Big Data and Exadata cloud services.

Palo Alto based Ravello was founded in 2011 and was balancing the cloud workloads for clients such as Arista, Brocade, Red Hat, SUSE and Symantec. In total it had raised $54 million in funding from venture capitalists such as Sequoia Capital, Norwest Venture Partners and Bessemer Venture Partners because its Cloud Application Hypervisor offered enterprises a way to unify the application environment across public and private clouds.

Ravello CEO Rami Tamir explained on the company web site why the technology will be part of the Oracle Public Cloud. “This agreement will accelerate our ability to reach more customers,” said Tamir, “our top priority is ensuring an uninterrupted service and seamless experience for you and all of our customers and partners. Rest assured, Ravello’s service will continue as is. Ravello will join Oracle’s IaaS mission to allow customers to run any type of workload in the cloud.”