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Google to Buy Startup Velostrata as It Builds Cloud Computing Business

By
Jonathan Vanian
Jonathan Vanian
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By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
May 9, 2018, 3:14 PM ET

Google plans to buy the small enterprise startup Velostrata as the search giant continues growing its cloud computing business.

Google said Wednesday that it would acquire Israel-based Velostrata, which specializes in helping companies move their internal corporate infrastructure to cloud providers. Terms of the Google-Velostrata deal were not disclosed, but Google (GOOG) said that Velostrata’s employees would join the company’s office in Tel Aviv.

Velostrata has 25 employees and has raised about $31.5 million since it debuted in 2014, according to deal-tracking service PitchBook.

When Velostrata first formed, it pitched its service as a way for companies to more efficiently manage their IT operations across both their internal data centers and public cloud providers like Amazon Web Services (AMZN) and Microsoft’s (MSFT) Azure business unit.

Since then, Velostrata added Google and its cloud computing service as another company it will help businesses migrate their infrastructure to.

“We are proud to join forces and help pave the way for enterprise customers to transform their most demanding enterprise workloads on Google Cloud Platform,” Velostrata Issy Ben-Shaul said in a statement.

Now that Velostrata will be part of Google, it’s likely that the company will no longer offer services that help companies move to competing cloud computing services like AWS or Azure.

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“This acquisition, subject to closing conditions, will add to our broad portfolio of migration tools to support enterprises in their journey to the cloud,” Google Cloud vice president of engineering Eyal Manor said in a statement. “That way, businesses can simplify their onboarding process to Google Cloud Platform, and easily migrate workloads to Google Compute Engine.”

About the Author
By Jonathan Vanian
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Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

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