Open-source cloud technology is proving to be an attractive proposition for venture capitalists.
Today, OpenStack private cloud player, Piston Cloud closed an $8 million funding round. Investors see massive potential in the space, despite that it has become increasingly flooded with competitors, such as Hewlett-Packard and Rackspace.
The San Francisco-based startup’s claim to fame is that it was the first to launch a commercial OpenStack distribution. The goal is to increase adoption by offering all the necessary components in one package, including compute, storage, networking, management and platform as a service (PaaS).
For this reason, it is positioned to take advantage of the increasingly popularity of OpenStack, which boasts a global community of over 1,500 contributors.
“We evaluated a number of opportunities in the OpenStack market, and expect to see continued growth and widespread adoption in the coming years,” said new investor, Data Collective’s Matt Ocko. Ocko said in a statement that his cloud computing and “big data”-focussed firm identified Piston Cloud as a contender to “capture the lion’s share of the market.”
The startup also brought on new CEO Jim Morrisroe in December. Former CEO (now CTO) Joshua McKenty is a big name in OpenStack circles, and was a technical architect in NASA’s Nebula cloud computing platform.
Morrisroe, a former general manager at VMware-owned Zimbra, said in a statement, “OpenStack and private cloud software is emerging as a massive market and is disrupting billions of dollars that is today spent on legacy technologies.”
Morrisroe today explained that the funding will help the two-year-old company “enhance our products, grow our customer base and establish new partnerships.” PistonCloud already pulled in $4.5 million in its first funding round in April, 2011.
Cisco, Data Collective, and Swisscom Ventures invested in the second round, joining existing investors Divergent Ventures, Hummer Winblad and True Ventures.
Filed under: Big Data, Business, Cloud, Deals
This article originally appeared on VentureBeat
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