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NetApp to Acquire Spot

Combined companies to establish leadership in Application Driven Infrastructure, optimizing both public cloud compute and storage costs with its leading platforms
Business Wire via ITWeb,
SUNNYVALE, Calif., 03 Jun 2020

NetApp® (NASDAQ: NTAP), the leader in cloud data services, today announced it has entered into a definitive agreement to acquire Spot, a leader in compute management and cost optimization on the public clouds, to establish leadership in Application Driven Infrastructure.

Digital transformation initiatives have accelerated and remain the top business priority, especially in today’s environment, and the public clouds offer the speed and flexibility needed to navigate this new normal as companies find to new ways to work, interact and do business. However, unoptimized clouds can be costly and slow down the business transformation. To address this challenge, an Application Driven Infrastructure translates the application’s workload patterns and drives the best possible level of performance and cost for storage and compute, all done while maintaining the contracted service-level agreement (SLA) and service-level objective (SLO). Together, NetApp and Spot’s Application Driven Infrastructure for continuous optimization will help customers save up to 90 percent of their compute and storage cloud expenses, which typically make up 70 percent of total cloud spending, and will help accelerate public cloud adoption.

“In today’s public clouds, speed is the new scale. However, waste in the public clouds driven by idle resources and overprovisioned resources is a significant and a growing customer problem slowing down more public cloud adoption,” said Anthony Lye, senior vice president and general manager, Public Cloud Services, NetApp. “The combination of NetApp’s leading shared storage platform for block, file and object and Spot’s compute platform will deliver a leading solution for the continuous optimization of cost for all workloads, both cloud native and legacy. Optimized customers are happy customers and happy customers deploy more to the public clouds.”

Spot provides a combination of tools for visibility and automation, that drive continuous optimization of workloads in a single platform while maintaining both SLA and SLO. This relieves DevOps, CloudOps, and FinOps teams from the burden and complexity of managing, scaling, tuning and optimizing cloud resources so that they can focus on business innovation under acceptable budget controls.

“Spot was founded with a vision to revolutionize the way companies consume cloud infrastructure services, using analytics and automation to deliver the most reliable, best performing and most cost-efficient infrastructure for every workload on every cloud,” said Amiram Shachar, Founder and CEO, Spot. “We look forward to joining the NetApp family and building together the future of Application Driven Infrastructure and helping customers to deploy more workloads in the cloud.”

Together, NetApp and Spot will establish an Application Driven Infrastructure to enable customers to deploy more applications to public clouds faster with Spot’s “as-a-service" platform for the continuous optimization of both compute and storage for both traditional IT buyers with enterprise applications, cloud-native workloads and data lakes.

The transaction is expected to close in the first half of NetApp’s fiscal year and is subject to the satisfaction of certain regulatory approvals and other customary closing conditions.

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About Spot

Spot, formerly Spotinst, is a leading provider of software that empowers CloudOps team to get the most out of their cloud. Its product portfolio helps companies optimize and automate their cloud use to maximize the value and availability of their cloud infrastructure while minimizing waste. Through the use of actionable visibility and insight, Spot continuously and automatically improves efficiency in real-time. Founded by Amiram Shachar and Liran Polak in 2015, Spot currently has over 180 staff across offices in San Francisco, New York, Washington DC, Tel Aviv and London.

About NetApp

NetApp is the leader in cloud data services, empowering global organizations to change their world with data. Together with our partners, we are the only ones who can help you build your unique data fabric. Simplify hybrid multicloud and securely deliver the right data, services and applications to the right people at the right time. Learn more at www.netapp.com.

"Safe Harbor" Statement Under U.S. Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding the expected benefits of the transaction, the anticipated timing of the transaction, descriptions of NetApp’s future strategy and its impact on customers and partners. Actual results, including with respect to NetApp’s financial targets and business prospects, could differ materially due to a number of factors, including but not limited to: the closing of the proposed transaction, including obtaining customary U.S. regulatory approval; the response to the acquisition by the customers, employees, and strategic and business partners of both companies; the ability to retain key Spot and NetApp personnel; and NetApp’s ability to realize its broader strategic and operating objectives. These and other equally important factors are described in reports and documents we file from time to time with the Securities and Exchange Commission, including the factors described under the section titled "Risk Factors" in our most recently submitted reports on Form 10-Q and 10-K. We disclaim any obligation to update information contained in this press release whether as a result of new information, future events, or otherwise.

NETAPP, the NETAPP logo, and the marks listed at http://www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200603005856/en/

Contacts

NetApp Press Contact: Amelia Vierra NetApp 408.822.6403 ng-uspr@netapp.com

NetApp Investor Contact: Lance Berger NetApp 408.822.6628 Lance.berger@netapp.com

Spot Press Contact: spot@burlington.cc