Cloudant has raised $12 million in series B funding from Rackspace Hosting, Devonshire Investors and Toba Capital

Database as a Service Provider Cloudant Raises $12M from Rackspace, Others

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Database as a service provider Cloudant announced on Tuesday that it has raised $12 million in series B funding from Rackspace Hosting, Devonshire Investors and Toba Capital to support its global expansion.

Headquartered in Boston, Cloudant established its UK headquarters in Bristol last month, and on Tuesday announced that it will open an office in San Francisco to support its enterprise growth strategy. It also has an office in Seattle.

Cloudant’s managed NoSQL DBaaS is based on a globally distributed network of data centers and offers 24/7 monitoring and administration.

Recently, Cloudant partnered with Rackspace to offer locally-hosted solutions in the UK and to provide customers with a DBaaS solution from Rackspace’s UK data center.

“We hear all the time from customers that dealing with the complexities of large-scale systems infrastructure just slows them down,” Pat Matthews, senior vice president of corporate development at Rackspace said in a statement. “Developers want control of their infrastructure, but they don’t want to have to manage it 24×7. Cloudant is the natural extension of this idea at the database layer. We’re partners that share a commitment to delivering the highest level of customer support, which is why investing in Cloudant works so well from a Rackspace perspective.”

With a significant number of developer customers, Rackspace has betted on the database as a service model big time this year. Aside from the Cloudant investment, in February Rackspace acquired database as a service provider ObjectRocket.

According to the press release, it’s also the momentum in the enterprise market that has helped Clouant attract new investors like Vinny Smith at Toba Capital, former Quest Software CEO.

“Enterprises are quickly realizing that they want a cloud that isn’t one size fits all. They want to scale their app without having to customize it to fit within a third-party cloud,” Vinny Smith, founder of Toba Capital said in a statement. “Spending on cloud infrastructure is no longer an IT line-item; it’s now a major line-of-business concern. With strategic support from Rackspace, Cloudant is providing a clearer path for businesses to run large production workloads in the hybrid cloud.”

Current Cloudant investors Avalon Ventures, In-Q-Tel and Samsung Venture Investment Corporation purchased additional shares. The funding will support Cloudant’s global expansion and grow the company’s support, service, and go-to-market strategies.

In 2012, Cloudant reported twelve-fold growth in recurring monthly revenue numbers.

Talk back: What do you see as the benefits or drawbacks to database as a service? How do you think the Cloudant investment will play out as Rackspace increases its DBaaS solutions? Let us know in a comment.

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