Cloud server security provider CloudPassage announced on Wednesday that it has completed a $14 million series B financing round, bringing its total funding to $21 million.
According to the press release, the round was led by Tenaya Capital, with participation from existing investors Benchmark Capital and Musea Ventures. As part of the deal, Brian Melton, managing director at Tenaya Capital will join the CloudPassage board of directors.
CloudPassage is a cloud server security provider, and has partnered with cloud hosting providers Rackspace, GoGrid and AWS to distribute its services. Based on its Halo server security platform, CloudPassage’s services include firewall automation, vulnerability management, security event alerting, server account management and more.
CloudPassage says it will use the additional funding to accelerate market penetration of Halo and extend its functionality in order to address the cloud security demand, which Forrester Research predicts will grow to $1.5 billion in 2015. Enterprise customers that are hesitant to move applications to the cloud often cite security as a main concern, so web hosts may use a security service like CloudPassage Halo to alleviate some of that concern. Recently, CloudPassage released results of its own survey that finds nearly one-third of US IT professionals rely on their public cloud provider to protect their servers, even though that isn’t usually provided by hosts.
“With the cloud quickly gaining traction, we were the first to provide a security platform that allows companies to safely leverage this new computing model. We’ll be extending our leadership in the IaaS security space with innovations that will change how companies look at server security altogether,” Carson Sweet, co-founder and CEO of CloudPassage said in a statement. “We’re excited to have the continued backing and expertise of top-tier investors; both Benchmark and Tenaya are well-known leaders who strengthen the company’s ability to refine and execute on our vision.”
CloudPassage says the financing round comes at an inflection point for the company, as it has experienced subscriber growth of more than 70 percent during the first two months of 2012. Recently, CloudPassage launched its automated security solution that provides network access control for servers in public clouds. Halo NetSec is designed for multi-cloud environments, and works with public clouds like Rackspace and Amazon EC2.
“We invested in CloudPassage based on the company’s ability to deliver innovative products that address a large market opportunity,” Melton said in a statement. “Security has been a key barrier to cloud adoption, and the company’s comprehensive cloud server security platform is well positioned to solve this problem.”
CloudPassage Halo operates across public, private and hybrid clouds, and makes it easy to comply with regulatory demands. Halo Basic is free for up to 25 servers and can be installed in less than five minutes, according to the press release.
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