Virtustream today announced it has closed out a Series A round of equity financing with approximately $40 million in total capital. Its latest funding comes from Intel Capital, Noro-Moseley Partners and TDFunds. This completes the Series A funding started by lead investors Columbia Capital and Blue Lagoon Capital announced in September 2009.
“This additional funding will allow Virtustream to further its vision by investing in the technology powering the offering.”
The funding will be used to support the continued development of Virtustream’s infrastructure and the expansion of the xStream cloud computing platform. Introduced in March, xStream is the first hybrid enterprise cloud platform with guaranteed compute resources across aggregate client workloads whether hosted in the company’s data center or installed on a customer’s premise. Based on Virtustream’s more than nine years of virtualization experience, the xStream platform increases operational efficiency and improves business continuity, typically delivering a 40-60 percent ROI without employee headcount reduction.
“Virtualization technologies play a crucial role in allowing businesses to fully leverage the enterprise cloud,” said Bryan Wolf, Managing Director at Intel Capital. “With the unique approach and leading edge technology behind the xStream platform, Virtustream is well-positioned to meet the needs of enterprises looking to cut IT costs and improve reliability by offering flexibility, disaster recovery and security in one complete offering.”
“Innovation and new technologies to drive more efficient business solutions are top of mind to any forward thinking CIO,” said Don Whittington, CIO of Domino Foods, Inc., ASUG Director and Chairman of the Americas SAP User Group CIO Customer Council. “The xStream platform offers the ability to buy capacity units as opposed to virtual machines and to provide business continuity in a manner that would be cost prohibitive for most organizations to achieve on their own. These are just two of the compelling features that make this solution attractive, not only to CIOs, but to investors in this space.”
“The xStream platform is based on numerous successful customer engagements where Virtustream has used its proven methodology to onboard, process and deploy virtualization and cloud environments,” said Rodney Rogers, Executive Chairman of Virtustream and General Partner of Blue Lagoon Capital. “This additional funding will allow Virtustream to further its vision by investing in the technology powering the offering.”
“Virtustream is on track with our plans for introducing new cloud computing offerings to market and expanding our data center footprint; we are very encouraged by the positive reception we are receiving from customers in the U.S. and the U.K.,” said Kevin Reid, Chief Executive Officer at Virtustream. “The funding we have received, recent company accolades and new customers we are acquiring are all validation for the hard work of our team to define cloud computing solutions that meet the varied needs of CIOs everywhere.”