Zynstra announced Wednesday that it secured $8.5 million dollars in Series B funding to be used for continued growth in the UK market and expansion into North America.
In September 2013, Zynstra received $3.8 million in Series A funding. Prior to that, in 2012, the company secured $2.4 million in angel funding, bringing its total funding to over $12.5 million.
Participants in the Series B funding round include Octopus Investments, Richard Brennan, former EVP Global Marketing at Orange Group, Tom Vari, former CIO of Cable at Rogers Communications Inc., and Jon Craton, Zynstra’s Chairman and former founder and CEO of Cramer.
“From the outset it was clear that the experienced team at Zynstra had a really exciting product. What we’ve seen proves that this really is the right time for this technology in the SMB market,” Frederic Lardieg of Octopus Investments said. “The UK has seen fantastic development and we’re confident that the team will bring the same success to North America when they launch in that market. We’re delighted to offer our continued investment and support to Zynstra.”
In February 2014 Zynstra won the Most Innovative SMB Cloud Solution at the UK Cloud Awards for its Cloud Managed Server Appliance.
“Each of Zynstra’s Cloud Managed Server Appliances is effectively a tenant of a multi-tenant platform all managed and maintained by the Zynstra Management Platform,” the website reads. “It is the collaboration of these two components that delivers a compelling experience and drives significant operational advantages to our customers.”
UK companies are adopting cloud rapidly which bodes well for Zynstra. The Vason Bourne annual study found 78 percent of UK organizations adopted at least one cloud-based service. Since the study began in 2010, UK cloud adoption has grown by 61.5 percent with most of it being hybrid.
Additional products announced this year by Zynstra include O365 Connect, education and SMB IT appliances. Each of the products is geared towards addressing specific needs of businesses using Microsoft 365, educational institutions and SMB cloud management.
“Businesses are reconsidering the way they purchase technology – seeking a significantly lower administrative burden, greater flexibility and a predictable opex payment model. At the same time, we are facing one of the largest server infrastructure refreshes of recent times when the Windows Server 2003 platform reaches the end of support in July 2015,” Zynstra CEO Nick East said. “It’s a compelling time to consider refreshing an IT estate, and a hybrid approach is becoming the new norm. We anticipate even faster growth over the next 12 months as a result.”