What’s Special About The Joyent Funding Round?

What’s Special about the Joyent Funding Round?

There is nothing special about small companies or startups getting funding, other than the obvious vindication of the opportunities in cloud computing. In fact, such funding stories have been the focus of several articles here (See the latest one: Cloud Computing Startups Raise Big Money: UPDATE 8). However, there’s something different, and in my opinion, special, about the $85 million round of funding closed by San Francisco cloud services provider Joyent (http://www.joyent.com/).

What’s special about this round of external financing is not the amount (which, by prevailing standards, is quite impressive) or the fact that Joyent had raised $25 million earlier. What differentiates this event from others of its ilk is the involvement of a client – Telefónica Digital, the growth arm of global telecom giant Telefónica, the third-largest in the world. In my opinion, when a client has enough confidence in a young company (Joyent is seven years old) to put its money not only in a business relationship but also in the growth story, it speaks volumes about the company’s and its management’s capabilities.

Therefore, it’s not hard to understand the latter’s enthusiasm at these developments. “You need to think of this as almost a Star Alliance for the cloud…..I think in two to three years, you’ll see a company that’s global continuing to mature … We’ll continue to grow this Star Alliance of the cloud,” commented Dave Young, CEO of Joyent, speaking to Portfolio.com. For those who don’t know, Star Alliance is the world’s first and largest airline alliance, with 27 members at current flying 600 million plus passengers in 189 countries around the globe.

In other words, Joyent envisions a growing relationship with Telefónica. And it seems that the latter holds similar beliefs. As Matthew Key, CEO of Telefónica Digital, said, “Joyent’s technology fits perfectly with technologies developed in-house and our cloud services model, and enables us to provide more competitive offerings to a broader range of customer segments.”

Service providers like Dell, FirstServer Softbank, XYBASE and Uniserve buy cloud software from Joyent, which also delivers public cloud services to companies like LinkedIn, Gilt Groupe and Kabam. Its PaaS (See: Cloud Computing For Dummies: SaaS, PaaS, IaaS And All That Was) offering is based on Node.js, the open source server-side JavaScript development environment that counts Microsoft and HP among its supporters (See: Joyent and Cloud9 Partner to Provide Ready-to-Deploy Node.js IDE ).

When venture capitalists invest in a startup, they do due diligence; however, it’s just one of several investments in their portfolios. However, when a client invests in a service provider, it is different. After all, it’s a company they are already working with, and will do so in the future. Tying in their own future with the provider’s suggests a tremendous vote of confidence in the latter’s abilities.

Now, Joyent has set its sights high – taking on the might of Amazon, which Young regards as his top competitor. In fact, he is confident of unseating one of the biggest (and oldest) players in cloud computing. “For God’s sake, it’s a book and grocery store. I admire them for the pioneering of what they’ve done. But I don’t believe they’re going to be a long-term player,” he said. Jeff Bezos can expect a battle on his hands.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

2014 Future Of Cloud Computing Survey Results

2014 Future Of Cloud Computing Survey Results

Engine Yard Joins North Bridge Venture Partners, Gigaom Research and Industry Collaborators to Unveil 2014 Future of Cloud Computing Survey Results SAN FRANCISCO, CA–(Marketwired – Jun 25, 2014) – Engine Yard, the leading cloud application management platform, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey,…

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends For nearly every business, the concept of business intelligence is nothing new. Ambitious organizations have been searching for any type of data-driven advantage for some time now – perhaps for as long as they’ve existed. However, the historical use of competitive intelligence pales in comparison to the…

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future Of Work: What Cloud Technology Has Allowed Us To Do Better

The Future of Work: What Cloud Technology Has Allowed Us to Do Better The cloud has made our working lives easier, with everything from virtually unlimited email storage to access-from-anywhere enterprise resource planning (ERP) systems. It’s no wonder the 2013 cloud computing research IDG survey revealed at least 84 percent of the companies surveyed run at…

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Many people have heard of cloud computing. There is however a tremendous number of people who still cannot differentiate between Public, Private & Hybrid cloud offerings.  Here is an excellent infographic provided by the group at iWeb which goes into greater detail on this subject. Infographic source: iWeb About Latest Posts souryaSourya Biswas is a…

Featured Sponsors

Sponsors

Can You Run Your Business Entirely From A Mobile Device?

Can You Run Your Business Entirely From A Mobile Device?

Can You Run Your Business Entirely From A Mobile Device? You know the feeling. It’s 8:00 a.m. Your bus is stuck in traffic, so you pull out your phone and start answering work emails. While you may rely on your mobile device’s apps for everything from an alarm clock to a fitness tracker to a…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter