Datadog offers nearly $4 billion for cloud security startup Upwind

Datadog, a software company that helps businesses monitor their computer systems, recently offered to buy Israeli startup Upwind Security for nearly $4 billion. The figure comes from a person with direct knowledge of the talks, as reported by The Information. Nothing has been announced by either company.

What Upwind does

Upwind protects the data and apps that companies keep in the cloud. The cloud simply means computers run by someone else and reached over the internet, instead of machines in your own office. Many businesses now run their websites, customer records and tools this way, which makes guarding it a big job.

Why it matters

The report calls this the latest sign of white-hot interest in cloud security firms. Upwind has also been approached by other bidders in recent months, so the sale is not settled. Another buyer could still come out ahead, or no deal could happen.

What it could mean for you

If your business runs on the cloud, expect software vendors to fold more security tools into what they already sell. That can be convenient. It can also bring changes to prices and contracts.

• Check when your software contracts renew.
• Ask your vendors what security features are included.
• Read notices about plan or price changes closely.

What is not known yet

The material does not say whether Upwind has accepted or rejected the offer, who the other bidders are, or what they offered. It also does not say when a decision might come. Until a deal is announced, treat the $4 billion figure as a reported offer, not a done deal.