April 3, 2022
The scope of the deal is estimated at about $ 650 million. Since its inception in 2018, Granolite has raised about $ 45 million. Developed artificial intelligence-based software designed to reduce cloud usage costs by optimizing the way customers use cloud resources
Intel (Intel) Signed an agreement to acquire a company Granulate Cloud Solutions Tel Aviv, which develops software tools for optimizing the cloud services of applications for the purpose of reducing the costs of using the cloud. Intel did not say the scope of the deal, however reported Which is expected to be completed in the second quarter of 2022 and upon completion, about 120 Granolite employees will be integrated into Intel’s data centers and AI division. Since its inception in 2018, Granolite has raised about $ 45 million. The TechCrunch website Reporting That the scope of the transaction is about $ 650 million.
Granolite has developed artificial intelligence-based software that is designed to reduce cloud usage costs by optimizing the way customers use cloud resources. The company’s system learns the customer’s patterns of use of cloud resources, and makes changes to the way the customer uses those resources, to absorb issues such as computing resources, amounts of information transmitted in the cloud, bottlenecks and the like. It makes dedicated changes depending on the client’s application and service status, even at the level of the operating system it uses.
The trillion-dollar paradox
The process of optimizing and reducing costs is carried out without the customer having to make changes to his software. The solution is designed to deal with the phenomenon that has received the nickname The trillion-dollar paradox. This means that when companies start entering the cloud, their costs are very low. However as they grow, their scope of use increases and they provide support to many customers and face high loads, cloud services become very expensive and many Macs become a heavy financial burden. Recently, for example, there were reports that DropBox had saved $ 75 million a year after it went out of its cloud service.
Co-founder and CEO of Granolite, Assaf Ezra, explained In the blog he wrote On the company’s website, which instead of giving up the cloud with all its many benefits, companies should use tools that make it possible to lower cloud costs through optimization. For example, to avoid unnecessary costs resulting from incorrect job definitions, or definitions that were correct for the early stages of the company and not for its growth stages, and the like. He said that when a company PerionWhich provides recommendation services for online advertisements, has grown to large workloads that include providing support to 1,000 different brands, it has begun using Granolite’s optimization system which has reduced the CPU resources in the cloud it has used by about 60%, improved response times by about 10 % And reduced cloud costs by about 52%.
The software will be integrated in all Intel data center solutions
Granolite was founded by Assaf Ezra and CTO Tal Sayag. The company is well known to Intel, especially since the end of 2019, when it joined the first cycle of the Intel® Ignite growth incubator, in which the two companies worked on optimizing data centers based on Intel’s Xeon processors. In October 2021, Intel Sales Manager in the field of data centers, Ron Whitefield, joined her for the position of Business Development Manager. Among other things, he served as an instructor and consultant at Intel-Ignite. Intel has announced that it plans to expand the scope of Granolite installations, and integrate it into all of Intel’s data center solutions.
Posted in categories: News, Information Technology, Mergers and Acquisitions, Israeli Industry
Posted in tags: intel, granulite, cloud
