plane flying through clouds
It's no secret Oracle is investing heavily in cloud computing. PHOTO: Dan DeLuca

Oracle Corp. announced today it signed an agreement to acquire Dyn, the cloud-based internet performance and DNS provider.

The news comes one month after Manchester, N.H.-based Dyn reported a major Distributed-Denial-of-Service (DDoS) attack that crippled major websites including Twitter, Reddit, GitHub, Amazon, Netflix, Spotify and even its own.

Company officials did not disclose financial terms of the deal.

Dyn's 'Immensely Scalable' Solution

“Oracle already offers enterprise-class (Infrastructure-as-as-Service) IaaS and (Platform-as-a-Service) PaaS for companies building and running internet applications and cloud services,” Thomas Kurian, president of product development for Redwood City, Calif.-based Oracle, said in a statement. “Dyn’s immensely scalable and global DNS is a critical core component and a natural extension to our cloud computing platform.”

Dyn’s solution drives 40 billion traffic optimization decisions daily for more than 3,500 enterprise customers. The acquisition will allow Oracle cloud customers to "optimize infrastructure costs, maximize application and website-driven revenue and manage risk,” according to Kyle York, Dyn's Chief Strategy Officer.

Oracle did not reveal a firm roadmap for Dyn's platform in the announcement. It is reviewing the existing Dyn product roadmap and will alert customers to any potential changes, as noted in a statement related to the deal. Officials did say the Dyn platform will help customers meet specific needs in:

  • Meeting high-end user expectations for tailored applications that deliver CX
  • Building highly responsive applications that can connect to any device
  • Running these applications on a set of infrastructure services that are integrated and scale globally

Oracle Dyn acquisition

Oracle Builds Cloud Muscle

Oracle's last five acquisitions — including Dyn — share a common cloud denominator. Since May, the company has also bought:

  • Opower: cloud-based customer engagement software for utility industry
  • NetSuite: cloud/Saas Enterprise Resource Planning provider
  • LogFire: cloud-based warehouse management applications
  • Palerra: cloud access security broker

Gartner analysts noted in an August report Oracle acquired NetSuite to strengthen its position in digital commerce while driving toward its goal of cloud dominance and $10 billion in cloud revenue. 

Its total cloud revenue for the year ending May 31, 2016 was $2.85 billion, up from $2.09 billion and $1.58 billion the prior two fiscal years, according to its annual filing with the United States Securities and Exchange Commission (PDF). Oracle made $37.08 billion in revenue for its 2016 fiscal year as it tries to compete with SAP, Salesforce and Microsoft.

Inside DDoS Attack

Neither Oracle nor Dyn officials mentioned last month's major DDoS attack. But the topic has remained top of mind for many in the ensuing weeks:

According to a blog post by Dyn’s York, Dyn began experiencing a DDoS attack at 7 a.m. ET on Oct. 21. Two hours later, Dyn mitigated the attack and restored service to customers. 

"Unfortunately, during that time, internet users directed to Dyn servers on the East Coast of the US were unable to reach some of our customers’ sites, including some of the marquee brands of the internet," York wrote. 

Dyn did not experience a system-wide outage at any time, York wrote. Dyn experienced a second wave of attacks just before noon ET. Though it was more global in nature, Dyn restored at approximately 1 p.m. ET. 

News reports of a third attack wave were then verified by Dyn. 

"While there was a third attack attempted, we were able to successfully mitigate it without customer impact," York wrote. "Dyn’s operations and security teams initiated our mitigation and customer communications process through our incident management system. We practice and prepare for scenarios like this on a regular basis, and we run constantly evolving playbooks and work with mitigation partners to address scenarios like these."