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

Sorry, comments are closed for this post.

Knots And Cloud Service Providers

Knots And Cloud Service Providers

How Do These Two Compare? In Boy Scouts, I learned how to tie knots. The quickest knot you can tie is the slipknot. It’s very effective for connecting one thing to another via the rope you have. It was used in setting up tents, mooring boats to docks temporarily and lifting your food up into…

Is Your Corporate Data Appearing On Personal Clouds?

Is Your Corporate Data Appearing On Personal Clouds?

Corporate Data Appearing On Personal Clouds Enterprise cloud adoption has led to cloud consumerization, but how safe is any personal cloud? Remember when you’d join a company and they’d issue a desktop computer and corporate-issued cell phone? And remember all the company’s data was stored in a server on-site at the company? It’s fair to…

From Illusion To Reality: Up Personal On Cloud Computing Privacy

From Illusion To Reality: Up Personal On Cloud Computing Privacy

Cloud Computing Privacy We are under an illusion around the cloud computing. Without a doubt the benefits are incredible. However, cloud impacts personal user privacy and potentially exposes their private data in ways they may not have anticipated. Given that users don’t usually read the terms of service and privacy policies, it is unclear how…

How Cloud Computing Is Changing The Retail Game

How Cloud Computing Is Changing The Retail Game

Cloud Computing Retail The retail industry is constantly evolving to meet the ever-changing needs of consumers. This transformation is influenced by e-commerce, social networking and the latest technologies. Today’s shoppers expect a connected and interactive consumer experience from start to finish. According to a report by the National Retail Federation, it is a projected that…

How To Overcome Data Insecurity In The Cloud

How To Overcome Data Insecurity In The Cloud

Data Insecurity In The Cloud Today’s escalating attacks, vulnerabilities, breaches, and losses have cut deeply across organizations and captured the attention of, regulators, investors and most importantly customers. In many cases such incidents have completely eroded customer trust in a company, its services and its employees. The challenge of ensuring data security is far more…

Driving Success: 6 Key Metrics For Every Recurring Revenue Business

Driving Success: 6 Key Metrics For Every Recurring Revenue Business

Recurring Revenue Business Metrics Recurring revenue is the secret sauce behind the explosive growth of powerhouses like Netflix and Uber. Unsurprisingly, recurring revenue is also quickly gaining ground in more traditional industries like healthcare and the automotive business. In fact, nearly half of U.S. businesses have adopted or are planning to adopt a recurring revenue model,…

Protecting Devices From Data Breach: Identity of Things (IDoT)

Protecting Devices From Data Breach: Identity of Things (IDoT)

How to Identify and Authenticate in the Expanding IoT Ecosystem It is a necessity to protect IoT devices and their associated data. As the IoT ecosystem continues to expand, the need to create an identity to newly-connected things is becoming increasingly crucial. These ‘things’ can include anything from basic sensors and gateways to industrial controls…

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the 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.

Sponsor