A software company has lost $9 million in a cloud-powered software acquisition after a software upgrade from its acquisition arm failed, the software company said.
The company, Digital Ocean, said Tuesday it would shut down its cloud-driven software development platform and sell the product.
Digital Ocean is owned by Oracle Corp., a software developer and cloud-platforms company that makes software for the web, desktop, and mobile platforms.
It also develops cloud computing and other services for businesses, and sells that to customers.
The deal was part of Digital Ocean’s $11.6 billion acquisition of Rackspace Inc. DigitalOcean has more than 100 million users worldwide, and has about $4.7 billion in annual revenue, according to the company’s annual report.
The acquisition included a company called Rackspace’s cloud computing platform and services.
DigitalCloud declined to comment.
DigitalSol, a startup based in San Francisco, acquired Rackspace in January.
The purchase included Rackspace and its online platform, DigitalSol Online.
Digital Sol was acquired by Oracle in May.
Digitalsol’s chief executive, Scott Giannakopoulos, told analysts the acquisition would help DigitalOcean “build a cloud platform that’s going to be used by the world’s largest companies.”
Giannacopoulos said DigitalSol was working with Rackspace on the acquisition.
DigitalSolar, a software company based in Santa Clara, California, acquired DigitalSol in May for $5.6 million.
Digital Solar said it was “excited to be working with DigitalOcean and Rackspace to help the company take the next step forward in its future.”
DigitalSolar declined to say how much of the purchase price was for DigitalSol’s cloud-software platform and how much was for Rackspace.
Digital SOL also has an acquisition deal with Amazon Web Services.
The two companies have similar cloud computing products.
DigitalSSL, a cloud software company, acquired DataCloud Systems in February.
DataCloud is owned and operated by Oracle.
DataSSL did not immediately respond to a request for comment.
The Oracle-owned software company was founded in 2008 and has nearly 7 million active customers worldwide.
The software company does not disclose its revenue, but a search of its earnings reports shows it makes money through advertising.
The cloud-services company had been building software for its customers that it sells to other companies and sells to companies in other industries.
Digital SSL did not have any new deals in its portfolio, but the software was available for purchase through a third-party vendor, DigitalSSL Cloud Partners LLC.