Acquisitions have been coming thick and fast among the Cloud Wars Top 10. The latest cloud leader to splash out is Snowflake. The company announced its intention to buy Crunchy Data, a provider of enterprise-grade support, tools, and cloud-native solutions for PostgreSQL. So, what are the details of the deal, and what will it add to Snowflake’s already powerful tech stack?
The Terms
Reports suggest that Snowflake will pay approximately $250 million for Crunchy Data, although the exact figures have not been officially published. Founded in 2012, Crunchy Data is headquartered in Charleston, South Carolina and has around 100 employees. Key attributes of the company’s tech offering include:
- Enterprise support for mission-critical PostgreSQL deployments.
- Cloud-native software and tools
- Advanced security and compliance, including support for FedRAMP and HIPAA
- Built-in replication, backup, and other data protection and recovery tools
With the acquisition of Crunchy Data, Snowflake is set to integrate its PostgreSQL database, Snowflake Postgres, into its AI Data Cloud. This integration will transform data transfer to Snowflake, enabling advanced AI development on PostgreSQL.
“Our vision is to deliver the world’s most trusted and comprehensive data and AI platform to our customers,” said Vivek Raghunathan, SVP of Engineering at Snowflake. “Today’s announcement of our proposed acquisition of Crunchy Data represents another reason why Snowflake is the ultimate destination for all enterprise data and AI needs.
“We’re tackling a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud.”
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The Deal in Context
The acquisition of Crunchy Data comes on the back of Databrick’s recent purchase of Neon, the “developer-first serverless Postgres company.” Again, the focus here is to absorb Neon’s capabilities to develop agentic AI.
But why does this laser focus on PostgreSQL?
- PostgreSQL is an open-source object-relational database system known for its reliability, robustness, and performance.
- The database supports both SQL (relational) and JSON (non-relational) querying.
- For the past two years, PostgreSQL has been voted the most popular database. Currently, it is used by 49% of developers.
- PostgreSQL is a perfect fit for agentic AI because it supports structured and semi-structured data, enables robust querying, and can handle simultaneous agents with ease.
Closing Thoughts
It’s interesting to see how each company in the Cloud Wars Top 10 is finding a unique way to achieve the same ultimate goal: AI dominance. Some look to join forces with organizations to offer something new — like ServiceNow’s recent collaboration with Juniper Networks. Others, like Google Cloud, have concentrated on their strengths, such as creating a universal super assistant.
In this example from Snowflake, the company is bolstering its capabilities in the agentic AI era by building on its groundbreaking capabilities in the data space — namely, its AI Data Cloud.
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