Avere Systems announced $20 million in Series D venture funding on Thursday. Western Digital Capital leads the funding with other participants including Lightspeed Venture Partners, Menlo Ventures, Norwest Venture Partners and Tenaya Capital. Avere plans to use the funds to continue development of its hybrid cloud storage solutions and to accelerate sales and marketing efforts.
This comes after a week full of cloud related businesses receiving funding. Box, Rushfiles, Yodle, Zynstra, and Rackware all announced funding this week. According to the Rightscale 2014 State of the Cloud Survey, 94 percent of organizations are running applications or experimenting with infrastructure-as-a-service, 87 percent are using public cloud and 74 percent have a hybrid strategy. Cloud services are obviously an area of rapid growth and additional funding should allow companies to more easily compete in this evolving environment.
“We are impressed with the Avere management team’s continued ability to execute on its plan to make hybrid cloud storage a reality for enterprises,” John Jarve, Managing Partner at Menlo Ventures said. “Now that the company has proven to deliver NAS-quality performance in a hybrid cloud environment, we expect mainstream enterprises to adopt this new technology at a rapid rate over the next 18-24 months.”
Rather than increasing physical storage capacity through hardware, Avere technology works by using a software-defined storage tiering methodology that uses many different types of physical storage and optimizes the load.
“The reality for 99 percent of enterprises is they will operate increasingly in a hybrid IT storage environment for many years to come. This means that no single storage technology will win, and both on-premises and cloud storage will be required to achieve cost and performance goals,” Ron Bianchini, president and CEO of Avere Systems said. “With this Series D funding round, we continue to scale the company so that we can provide the best solutions to customers embarking on their hybrid cloud path.”