Cloud Management Provider Rackware Raises $2.3 Million in Funding

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Cloud management company RackWare announced on Wednesday that it has closed a $2.3 million funding round after making major gains in revenue and customer base. The funding round was led by Kickstart Seed Fund and Osage Venture Partners, both of which also led RackWare’s first funding round just a year ago.

Rackware’s flagship product, RackWare Management Module, allows enterprises to move their workloads between private, public or hybrid cloud environments while scaling resources.

RackWare posted its best ever growth in both revenue and customers for three consecutive quarters, as of July 1.  These gains amount to a 75 percent increase in customers from the first half of 2013 to the first half of 2014.

“We’ve experienced phenomenal quarter over quarter growth in every corner of our business as enterprises increasingly turn to RackWare for cloud mobility and elasticity solutions. Continued investor confidence, as well as ongoing validation from partners and customers, underscores the work we’ve done to date,” said Sash Sunkara, chief executive officer and co-founder of RackWare. “Our unique approach to intelligent cloud automation is proven in implementations across a range of verticals. The additional capital we are announcing today will help us extend the experience to new markets and further fuel the mass adoption of our cloud technology.”

A series of new and strengthened partnerships over the past six months with major industry players SoftLayer, CenturyLink, and Peer1 contributed to RackWare’s growth.

RackWare also added two VPs in the past year; Eric Sherman as VP of worldwide sales and Steven Olson as VP of engineering.

The latest funding round brings RackWare’s total funding to over $7 million, and the company says it will invest in product development and market awareness of RackWare Management Module, which further defines the roles of the new VPs. RackWare hopes marketing can furnish further inroads into the EMEA region.  Most of its recent sales gains were made in Europe and North America.

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