San Francisco, Apr 28 (IANS): Google is reportedly in negotiation to acquire enterprise cloud software company D2iQ for over $250 million, the media reported.

D2iQ is a Google Cloud Platform and G Suite partner and acquiring D2iQ could help Google better compete with Amazon.

"Google originally developed Kubernetes, the open source server-management technology that D2iQ has integrated into its software offerings," The Street reported on Monday.

D2iQ investors include Hewlett Packard Enterprise, Khosla Ventures, Koch Disruptive Technologies, Microsoft, Andreessen Horowitz and T. Rowe Price Associates.

Earlier this month, D2iQ was awarded a US Department of Defense Enterprise Software Initiative contract.

D2iQ will provide the Defense Department with access to its suite of enterprise-grade open source solutions for deploying cloud native applications in Day 2 operations, a feature that is used later in the life-cycle of the managed object.

D2iQ is an enterprise-grade cloud platform provider formerly known as Mesosphere.

The company recently reportedly laid off 34 employees, or 13 percent of its workforce, to reduce costs to deal with a projected 40 per cent sales decline, reports CRN.