Cloudability acquires Australian cloud automation firm

The acquisition will expand the supplier’s footprint in the ANZ market through new automation capabilities

Cloud cost management software supplier Cloudability has acquired CloudMGR, a cloud automation specialist, in a bid to capture a slice of Australia’s booming cloud computing market.

CloudMGR, the first acquisition by Cloudability in Australia and New Zealand (ANZ), is based in Brisbane. It offers analytics tools for enterprises to track and manage their cloud spending and usage on cloud services such as Amazon Web Services (AWS) and Microsoft Azure.

“We are big believers in automation,” said Cloudability’s CEO Mat Ellis, adding that CloudMGR features such as scheduling resources and auto-scaling could show up in future Cloudability releases. “We will incorporate their expertise in this area to improve on our solutions relating to data-driven automation.”

While the terms of the deal were not disclosed, Ellis said the acquisition would enable Cloudability to better serve its existing customers as well as the “ever-growing number of companies adopting the cloud in Australia and New Zealand”.

According to technology analyst company IDC, global spending on cloud services will hit $122bn in 2017, with ANZ seeing a surge in investments by cloud suppliers in recent years.

In 2016, AWS added a third Sydney availability zone, following the launch of Microsoft Azure in 2014. Google is expected to unveil a Sydney region for the Google Cloud Platform in 2017.

Enterprise IT bigwig Oracle has also started to offer a wider range of cloud services targeted at Australian companies with data sovereignty and low-latency requirements.

Cloudability’s customer base in ANZ includes Australian airline Qantas, property portal and Atlassian, a supplier of software development tools and collaboration software.

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“Some of our first enterprise customers were from Australia and New Zealand, which made it easy to take the region seriously,” Ellis wrote in a blog post. “These early users had embraced a radical new idea, and, supported by their management, sought to develop tools and systems to address the problems that come with any new opportunity.”

With more enterprises embracing a multi-cloud strategy, the demand for cloud systems management software with automation and cost management capabilities is expected to increase.  

According to market research firm MarketsandMarkets, APAC will be fastest growing market for cloud systems management software from 2016 to 2021. This is largely due to increased spending on IT infrastructure and the growing adoption of cloud applications in the region.

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