Oracle acquires DNS powerhouse Dyn to take on leading cloud players

Oracle is a strong player in the datacenter realm, but with this deal, perhaps Larry Ellison's cloud dreams are coming closer.

Oracle has agreed to acquire cloud-based Internet performance and DNS provider Dyn in the hopes of extending Oracle cloud computing solutions and taking on rivals such as Amazon.

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On Monday, the Redwood City, California-based firm said in an announcement that adding "Dyn's best-in-class DNS solution extends the Oracle cloud computing platform and provides enterprise customers with a one-stop shop for Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS)."

Financial details were not disclosed. View Oracle's acquisition presentation here.

Dyn provides backbone support for many popular services online, including traffic management and online domain registration.

Catering for over 3,500 enterprise customers, Dyn counts household names such as Reddit, Twitter, Netflix, and Pfizer.

The company recently hit the headlines after becoming the victim of one of the largest distributed denial-of-service (DDoS) attacks ever recorded. The DDoS, launched in October, was dubbed "complex & sophisticated" by Dyn, was made possible due to the IoT Mirai botnet and managed to disrupt and slow down countless domains.

Oracle says that the acquisition will give customers access to Dyn's traffic and performance tools, and allow them to optimize costs and boost website-based revenue streams.

"Oracle already offers enterprise-class IaaS and PaaS for companies building and running Internet applications and cloud services," said Thomas Kurian, president of product development at Oracle. "Dyn's immensely scalable and global DNS is a critical core component and a natural extension to our cloud computing platform."

In September, after the release of Oracle's second-generation Infrastructure-as-a-Service (IaaS) datacenters, Oracle CTO Larry Ellison proclaimed that "Amazon's lead is over" in the cloud market.

Considering the popularity of Amazon Web Services (AWS), Microsoft Azure, IBM solutions and Google Cloud, you cannot say that beyond data centers, Oracle has anywhere near the same client base or strength in the cloud market.

However, investment in companies -- such as Dyn -- with the contacts and platforms already in place -- could potentially move Oracle away from legacy software and in the right direction.

The companies will continue to work separately until the closure of the deal.

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