Cloud Computing Startups Raise Big Money: UPDATE 11
This is the twelfth in a continuing series on startups raising funding. You can read the latest in the series at: Cloud Computing Startups Raise Big Money: UPDATE 10 . For previous updates, please click on relevant links in the aforementioned article.
Today, there are two startups in focus – Virtustream and Appirio.
Maryland-based cloud startup Virtustream recently tied up an additional $15 million in its third round of funding. This brought total investor money in the company to an impressive $75 million, after having raised $10 million in July last year. The round was led by old investors Intel Capital, Columbia Capital, Noro-Moseley Partners and TDF with the addition of new name QuestMark Capital.
The company’s main offering is the cloud provisioning platform xStream, promoted as “an enterprise-class cloud solution to manage private, virtual private, public and hybrid clouds.” It also offers consulting services with its Cloud Advisory Services advertised as “providing expertise in the areas of cloud adoption, architecture strategy, migration roadmaps and integration services.”
Among its clients it counts big names like Intel, Pizza Hut and Domino Sugar. While it may still be called a startup, it is no small operation with its own data centers in the US and UK, and offices in Washington, DC, New York, San Francisco, Atlanta, London, Dublin and the Channel Islands. The company declared its intention to use the new funds to expand it geographical footprint and strengthen its xStream product. China and Southeast Asia, including Malaysia, Indonesia and Thailand, will be the focus of future expansions.
California-headquartered cloud consulting company Appirio recently raised a whopping $60 million in a Series D funding round led by General Atlantic and participated in by existing investors Sequoia Capital and GGV Capital. The company, which counts among its clients the likes of Facebook, Home Depot, BMC Software, Japan Post, Medtronic, Flextronics, Twitter and NetApp, plans to use these funds for further growth, including possible acquisitions.
Appirio provides consulting services to companies looking to move to the cloud. Besides offices in the US, UK, Singapore and Japan, the company also runs a successful crowdsourcing development platform called CloudSpokes that has 35,000 developers from 65 countries.
“Enterprises are demanding to work with a trusted, agile cloud advisor and we fill that role. Just as legacy software providers have struggled to add cloud to their legacy businesses, the global system integrators, including Accenture and Deloitte, will be challenged to overcome their on-premise dependency and adapt to the rapidly changing market and customer demands related to the cloud,” said Chris Barbin, CEO of Appirio.
General Atlantic operating partner Gary Reiner commented on Appirio’s USP. “Appirio is defining what a next-generation technology services provider will be in the era dominated by cloud solutions. The company’s unique combination of technology and crowdsourcing – along with their cloud focus and experienced team – have the potential to completely disrupt the $793 billion worldwide Global Systems Integrator market.”
Adam Bain from Appirio client Twitter had high words of praise. “Twitter is redefining an industry and wants to work with service providers that are agile enough to evolve and define our business processes. Appirio has become a trusted adviser and partner, helping us scale our operations and execute solutions as quickly as we can think of them,” he said.
By Sourya Biswas