Flexera acquires Spot from NetApp

NetApp

Flexera is acquiring Spot from NetApp. The acquisition is expected to strengthen Flexera’s FinOps portfolio and add additional cloud cost management capabilities, including Kubernetes.

Flexera has reached an agreement with NetApp to acquire Spot. With the acquisition, Flexera aims to expand its cloud expense management and FinOps offerings. The integration of Spot’s technology, which uses AI and machine learning, should help organizations optimize cloud expenses and manage hybrid cloud environments, SaaS applications and container infrastructures.

Spot’s solutions provide automated optimization and visibility into cloud infrastructure and applications. By adding these functionalities to its own FinOps portfolio, Flexera expands its capabilities, including Kubernetes cost management and financial cloud obligation management. In addition, with this acquisition, Flexera aims to strengthen the ecosystem of FinOps Managed Service Providers (MSPs) and attract new DevOps users.

Break even?

For NetApp, the sale fits within a strategy that focuses on intelligent data infrastructure and long-term growth. According to NetApp, the acquisition by Flexera offers the best opportunities for further development of Spot solutions. Still, the transaction is not a complete success story.

After all, NetApp itself bought Spot in 2020 for an undisclosed amount, although the acquisition price was estimated at $450 million at the time. Now both parties again are not revealing the acquisition price, but would be around $100 million. There is little chance that NetApp has earned enough on Spot over the past five years to get out of costs.