CloudCentral founder and chief executive officer, Kristoffer Sheather says the acquisition of the California-based company is a “transformational deal” from both a technology and investment perspective, with the addition of Software Defined Storage services “eliminating the need to pay third parties for storage and gives us more control over the future development of our platform."

According to Sheather, the buyout gives CloudCentral the potential to make the company a serious player in a market that's been growing at a 36% compound annual rate.

Sheather announced the DEY deal ahead of CloudCentral’s reverse listing on the ASX in June and follows DEY’s raising of $3 million of funding back in 2012 to develop what he described as “pioneering data centre storage management software.”

When it completes the reverse takeover with Dromana Estate, CloudCentral expects to raise $3.5 million from its listing on the ASX.

Sheather said the DEY software enabled large data centre customers to buy high performance storage at lower costs than using traditional storage vendors.

“The model is similar to those methods used by Google, Amazon and Facebook to keep storage costs low whilst delivering the high levels of reliability, performance, scalability expected by enterprise and government customers.

“This is a crucial addition to CloudCentral's current storage offerings and introduces the Software Defined Storage business model, which separates ownership of hardware and software, allowing customers a far wider choice of software vendors. CloudCentral builds and sells cloud computing infrastructure, along with offering maintenance and support services.”

According to Sheather, this means that for any customer, “cloud computing will become a lot more cost-effective and can be expanded in smaller increments than those offered by major Australian competitors.”

"Expanding into the private cloud creates a completely new offering for us, while reducing costs for our public cloud customers as we don't need to pay the big vendors' really high storage costs.

"We would be the first Australian cloud provider to own their entire stack from end to end, and doing it in a completely unique way."