Mirantis Gains $100M in the Largest Series-B Investment Round in Open-Source Software History

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Mirantis, which specializes in OpenStack cloud software, has been given $100 million in a Series-B funding round, which will be used to double its engineering investments as well as to accelerate expansion in Europe and Asia-Pacific, hire support engineers, and grow its partner ecosystem.

The record-breaking round was led by Insight Venture Partners and also involved August Capital and existing investors Intel Capital, WestSummit Capital, Ericsson, and SAP Ventures. As part of the announcement, Insight Venture Partners managing director Alex Crisses will join the Mirantis board of directors.

Investors hope that Mirantis will become the principal cloud vendor of choice among big-name competitors such as VMware, Citrix, Amazon, Microsoft, HP, and others. One of the appeals of the open-source OpenStack cloud operating system is that it sidesteps the vendor lock-ins typical of many cloud providers, and Mirantis has been particularly vocal about not chaining its customers to a particular set of technologies.

“Our mission is to move companies from an expensive, lock-in infrastructure to an open cloud that empowers developers and end-users at a fraction of the cost,” said Mirantis president and CEO Adrian Ionel. “Customers are seeing the value; we’ve gone from signing about $1 million in new business every month to $1 million every week.”

Mirantis has helped implement more enterprise OpenStack clouds than any other vendor – a total of over 130 customers including the likes of Comcast, DirectTV, Expedia, NASA, NTT Docomo, PayPal, Symantec, Samsung, WebEx, Workday, and Ericsson. It was with Ericsson that Mirantis signed a five-year software licensing agreement that is the largest OpenStack deal on record.

Despite having no side-business outside of OpenStack, Mirantis has managed to be a major contributor to the direction of the OpenStack platform. According to Stackalytics stats, Mirantis is currently the third largest upstream contributor to OpenStack, with a particular focus on adding reliability and ease-of-use features geared towards enterprise use. Mirantis’ own distribution, Mirantis OpenStack is available for download, and an on-demand, hosted option is also available.

“People choose us because we have the best software and expertise for OpenStack, foster an open partner ecosystem, and are a major upstream contributor, influencing the technology’s direction,” Ionel said.
Ionel said the company is working to build the customer base and consistency for an Initial Public Offering by 2016.

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