Software asset management company Flexera has acquired multicloud management and cost optimization firm RightScale.

Flexera says by adding RightScale’s products to its portfolio, it “takes a big leap forward in helping solve the critical problem of cloud services overspend and control.”

Flexera’s Tom Canning

Tom Canning, Flexera’s senior vice president of ecosystem and strategy, tells Channel Partners that with RightScale, his company now has the “top technology asset management offering across software, hardware, SaaS and cloud services.”

“Partners will benefit from the addition of RightScale’s products to Flexera’s portfolio as more companies look for a multicloud cost optimization tool that provides spend insights, and a means to act on them,” he said. “Sixty percent of IT’s budget is driven by spend in software, hardware and cloud. As migration to the cloud continues, we’ve seen an increase in demand from our customers for multicloud management. This acquisition will allow customers to control and reduce spend across all of their cloud environments with one solution.”

Founded in 2007, RightScale services are built as multicloud, vendor agnostic solutions that support public and private clouds, including Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, IBM Cloud, OpenStack and VMware vSphere.

“This instantly expands and strengthens the channel for RightScale Cloud Management Platform and Optima,” Canning said. “Flexera has a large global sales force, a significant presence in G2000, and a large installed base. Flexera’s strength with software vendors also aligns with an important market for RightScale. We’re looking forward to enabling our Flexera partners to provide RightScale cloud-spend optimization capabilities to the customers and markets they serve.”

According to the RightScale 2018 State of the Cloud Report, most businesses are leveraging three or more cloud vendors. Gartner estimates that cloud platform and infrastructure services spending is 20 percent of the IT budget today. With an average 35 percent of that spending wasted, Flexera says a multicloud cost optimization tool that provides spend insights and a means to act on them has never been more important.

“We share Flexera’s commitment to innovation and to delivering products that allow businesses to optimize and control rapidly evolving technology environments,” said Michael Crandell, RightScale’s CEO and co-founder.  “With Flexera’s investment and leadership in technology asset management, we’re confident we can drive continued growth of our cloud management and cost-optimization offerings.”