Oracle buys cloud software startup Ravello Systems for $500 million, source says

Ravello Systems, which provides tools for running enterprise workloads in public cloud environments, has been acquired by Oracle. Oracle didn’t disclose terms of the deal, but a source familiar with the matter said Oracle is paying $500 million to do the deal.

Oracle has been rapidly growing its cloud business to compete with other companies likes of Amazon Web Services and Microsoft Azure. This acquisition could be strategically important to Oracle rushes to stand up its cloud infrastructure for compute, storage, and networking workloads.

“Ravello will join in Oracle’s IaaS mission to allow customers to run any type of workload in the cloud, accelerating Oracle’s ability to help customers quickly and simply move complex applications to the cloud without costly and time-consuming application rewrites,” Ravello cofounder and chief executive Rami Tamir wrote in a letter about the deal.

As of last year Ravello was able to raise $54 million, including a $26 million round announced in 2013. Investors include Qualcomm Ventures, SanDisk Ventures, Sequoia Capital, Bessemer Venture Partners, Norwest Venture Partners, and Vintage Investment Partners.

Ravello was started in 2011 and the head office is located in Palo Alto, California which is close to Oracle headquarters in Redwood City. Ravello has well known customers such as Arista, Brocade, Red Hat, SUSE, and Symantec.

Ravello will continue to provide services under Oracle brand. See more at venturebeat.