Cloud Computing Startups Raise Big Money: UPDATE 3
This is the fourth in a continuing series on startups raising funding. You can read the first three in the series here:
Today, there are two startups in focus – VMTurbo and ServiceMesh.
Massachusetts-based VMTurbo announced recently that it has closed a $10 million B-round of funding, financed by returning investors Bain Capital Ventures and Highland Capital Partners, bringing total capital raised to $17.5 million. It plans to use the funds for product development, customer support, sales and marketing.
The company, founded in 2008 by EMC and IBM veteran Shmuel Kliger and included by research firm Gartner in its “Cool Vendors in Cloud Management, 2011” report, describes its work as providing “intelligent workload management for cloud and virtualized environments”. Its customers include cloud service providers and enterprises such as British Telecom, Omnicare and L-3 Communications.
“Bain Capital Investments and Highland Capital Partners have been great partners. We are pleased that they are investing in VMTurbo’s next growth wave,” said VMTurbo president and CEO Lou Shipley.
“VMTurbo is emerging as the leader in automating the management of virtualized cloud infrastructures. Both service providers and enterprises are embracing VMTurbo’s platform to realize the compelling ROI that cloud computing can provide,” said Peter Bell, General Partner at Highland Capital Partners.
“Customers are finding that VMTurbo’s unique solution is the only holistic means of managing all resources in virtualized environments. These businesses depend on their Applications, and their applications depend on VMTurbo,” said Ben Nye, Managing Director at Bain Capital.
Silicon valley cloud computing startup ServiceMesh recently announced a $15 initial round of funding through Ignition Partners. The company intends to use the funds to scale up business and explore new partnerships.
ServiceMesh describes itself as providing “an enterprise cloud platform that’s the bridge between cloud computing technology and real enterprise business value……. to implement cloud-based “everything-as-a-service” IT delivery models that span internal and external IaaS, PaaS, and SaaS providers to provide quantum improvements in business agility and operating costs.”
Former Citrix executive and current Ignition partner Frank Artale, who will be joining the ServiceMesh Board, commented, “We see an immediate market opportunity for ServiceMesh in businesses of all sizes, including the largest enterprises and governments, because ServiceMesh is the only way to ensure that these organizations achieve significant business value from their cloud investment.”
“The investment community now recognizes that we are at the beginning of a massive and long-term transition to a cloud operating model,” said Eric Pulier, CEO of ServiceMesh. “But enterprises must be able to turn raw technology into business value. The ServiceMesh Agility Platform provides the unique missing link by bringing business IT services directly to users while at the same time keeping the environment safe and controlled. With this round of funding, Ignition Partners has affirmed ServiceMesh as a leading player in this rapidly expanding market.”
By Sourya Biswas