Dell Acquires Enstratius

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On May 6, 2013, Dell acquired Enstratius, the cloud – management software and services provider that delivers single and multi-cloud management capabilities.  Enstratius services include helping organizations to manage applications across private, public, and hybrid clouds.  This includes automated application provisioning and scaling, application configuration management, usage governance, and cloud utilization monitoring. 

Terms of the transaction have not been disclosed.

Acquiring Enstratius is part of Dell’s end-to-end solution strategy.  This will give the company key capabilities to deliver cloud management solutions.  In a prepared statement, Tom Kendra, vice president and general manager, systems management at Dell said, “As enterprises increase their use of public, private and hybrid clouds, the need for controls, security, governance, and automation become more critical.  Dell, together with Enstratius, is uniquely positioned to deliver differentiated, complete cloud management solutions to enterprise customers, large and small, empowering them with the efficiency and flexibility in the allocation and use of resources.”

Enstratius software can be used as an on-premises software or as software-as-a-service.  A business can either use the software from within their data center, or they can access it via a hosted service.  Currently, Enstratius supports more than 20 public and private cloud platforms, including OpenStack, VMware, Rackspace, Amazon Web Services and Windows Azure.  It also has the flexibility to add new clouds.

The program simplifies cloud computing management tasks with a self-service catalogue, design tools, and management tools which help customers create and deploy multi component applications across one or more clouds.  The program is “cloud agnostic” which allows customers to choose from a wide variety of public and private cloud providers, which includes Dell and non-Dell clouds.

Cloud management has been a key strategic priority for Dell.  In addition to bringing Dell cloud infrastructure management for public, private and hybrid cloud deployments, Estratius compliments the capability Dell recently acquired from Gale Techologies’ Active System Manager (ASM) by providing application configuration capabilities and multi-cloud management.  The program also builds on Dell sSoftware’s portfolio of technologies such as Foglight performance monitoring, Quest One identity and access management, the Boomi integration platform, and data protection offerings such as AppAssure and NetVault and creates a stronger systems management portfolio that enhances multi-cloud management.

David Bagley, chief executive of Enstratius said, “We are excited to join the Dell team and bring our expertise to Dell’s rapidly growing cloud management capabilities.  Together, Enstratius and Dell create new opportunities for organizations to accelerate application and IT service delivery across on-premises data centers and private clouds, combined with off-premises public cloud solutions.  This capability is enhanced with powerful software for systems management, security, business intelligence and application management for customers, worldwide.”

Founded in 2008, Enstratius is headquartered in Minneapolis, Minnesota.  After the acquisition, Dell plans to keep the company’s employees.

The LuAnn Capital Group is a global Mergers and Acquisitions advisory firm with focus on selective industries. 

In every step of the mergers and acquisitions process, we pay attention to our clients needs. We listen. We respond. We’re more accessible to our clients than larger companies, whether the issue is small-business valuations, small-business marketing tips, exit strategies or other aspects involved in the process of selling a company.

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