Cloud Computing in Israel: From Startups to Tech Giants

Israel, often dubbed the "Start-up Nation," has established itself as a major player in the cloud computing sector.At the intersection of technological innovation, cybersecurity, and digital transformation, the country is home to a vibrant ecosystem of startups alongside significant collaborations with global cloud giants such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.

The Israeli cloud landscape is characterized by an exceptional concentration of expertise, much of it originating from elite military tech units like the renowned Unit 8200. From this culture of excellence have emerged world-class companies with global reach. One notable example is Wiz, founded in 2020, which quickly rose to become a global leader in cloud security. Its technology helps identify vulnerabilities in infrastructures hosted on AWS, Azure, or Google Cloud. In March 2025, Alphabet, Google’s parent company, announced its acquisition of Wiz for $32 billion—the largest deal in its history in the cybersecurity sector.

Another standout Israeli company is Zadara, which offers on-demand cloud storage solutions within the “Storage-as-a-Service” model. With a global presence, Zadara expanded its local capabilities by acquiring NeoKarm, a company specializing in AWS-compatible environments. Meanwhile, Odix, an expert in malware neutralization, integrated its technology into Microsoft 365 through its FileWall product. Odix also receives support from the European Union to expand its cybersecurity services to small and medium-sized businesses.

Other notable success stories include CloudEndure, a company specializing in disaster recovery and cloud migration, acquired by AWS in 2019 to enhance the resilience of its platform.

But beyond startups, it is through Project Nimbus that the Israeli government has taken a decisive step in large-scale cloud adoption. Launched in 2021, this $1.2 billion initiative is based on a strategic partnership between the Israeli government, AWS, and Google Cloud. The project aims to migrate all public services to locally hosted cloud infrastructures while ensuring data sovereignty. It is structured around four key pillars: data center construction, migration strategy design, technical support, and cloud usage optimization. KPMG was selected to lead the overall strategy, while AWS and Google are responsible for building the infrastructure.

However, Nimbus is not without controversy. Internal documents revealed that the Israeli Ministry of Defense and the Israel Defense Forces (IDF) have reserved access to the cloud infrastructure, prompting protests from employees at Google and Amazon. Demonstrations took place in several U.S. cities, criticizing the military's involvement in a project presented as civilian.

On the infrastructure front, AWS announced the opening of data centers in Israel in 2023 to enable local hosting of sensitive data and accelerate the digital transformation of Israeli businesses. This move also responds to increasing demands for digital sovereignty.

In parallel, the Israel Innovation Authority launched an ambitious project for a national cloud-based supercomputing platform. Equipped with over 2,000 GPUs, the infrastructure is designed to support AI research. Google and Amazon are currently competing for the contract, which is estimated at over 240 million shekels.

Finally, collaborations between local startups and cloud giants are thriving. Companies such as monday.com, Fiverr, and Netafim use AWS to host their services and scale their operations. Wiz, for instance, emphasizes that using AWS was a key factor in its ability to grow rapidly while maintaining the highest security standards for its clients.

In summary, Israel stands out as a model of integration between local innovation and global infrastructure in the field of cloud computing. With ambitious public policies, an agile entrepreneurial ecosystem, and strategic technology partnerships, the country has emerged as a global leader in digital transformation.

Caroline Haïat