Oracle (NYSE: ORCL) co-founder and CTO Larry Ellison has never been shy about making acquisitions, and his company is at it again. This time, it has reached a deal to buy domain name system (DNS) leader Dyn. The companies did not disclose the price, but rumors it’s in the $600 million range.
According to Oracle, Dyn is “the leading cloud-based Internet Performance and DNS provider that monitors, controls, and optimizes Internet applications and cloud services.” Of Oracle’s nine acquisitions so far in 2016 — including its recent $9.3 billion megadeal for NetSuite –Dyn marks the fifth consecutive cloud-related deal.
Oracle sees Dyn’s DNS solutions as providing a potentially key component of its Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) product suite. It noted that Dyn’s solutions power some 40 billion internet traffic decisions daily, and that the company boasts more than 3,500 enterprise customers.
Dyn was the target of a massive distributed denial of service (DDoS) attack last month that impacted some of the most popular websites in the world. Not surprisingly, Oracle wouldn’t comment about last month’s cyberattack on Dyn, nor say whether it was already in discussions to acquire it prior to the event.
Oracle’s aggressive acquisition spree is helping drive outstanding cloud growth for the company. Last quarter’s earnings disappointed some investors, but the 59% jump in total cloud sales to $969 million certainly didn’t. While Oracle may not yet be the cloud leader it bills itself as, its acquisition of Dyn is another step in the right direction.
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Tim Brugger has no position in any stocks mentioned.
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