Feeds

Disk-over-Ethernet startup trousers another $50m

VCs pump more dosh into Coraid

Designing a Defense for Mobile Applications

A year after snagging $25m in venture capital funding Coraid has gone back to the cash well and scooped up another $50m. The VCs think Coraid is going places.

Quick recap: Coraid is the networked storage startup using the ATA-over-Ethernet (AoE) protocol, a system simpler than iSCSI but with no cross-industry support and hence the need to establish credibility. A fresh management team led by CEO Kevin Brown and chairwoman Audrey MacLean was parachuted in to help founder and chief technology officer Brantley Coile grow the company in early 2010.

The VCs' faith in the company has grown as it has expanded its business. In February 2010 it gained $10m funding. By November with customer numbers at 1,200 it obtained another $25m in a B-round. June saw 1,400 customers on the books with a larger set of channel partners. This has now become more than 1,500, and the VCS, the original ones and some new ones, have put more cash into Coraid's pockets, taking total funding to $85m. This is serious development money.

The company introduced EtherFlash solid-state drive storage in September at VMworld 2011, alongside the existing EtherDrive disk-drive-based arrays. It has inked partnership agreements with Arista, Caringo, Nexenta and others, bought Yunteq for cloud orchestration software, and its progress towards an IPO looks steady as a rock.

The VC backing means nothing directly to potential customers, but it has happened because actual customers are buying the kit. The moneymen have faith because customers have faith. Coraid wants more of them and needs to expand its worldwide channel and develop its products. That's what the new dosh will be used for.

The faith driving the company and its backers is that EtherDrive and EtherFlash arrays with policy-based automation can undercut the price and complexity of traditional Fibre Channel SANs and help customers cope with massive rises in unstructured data and cloud computing-based IT. Drink the Coraid Kool-Aid and you see that the traditional array vendors are hamstrung by high costs and complexity that is holding back their customers.

The old-school array vendors just see a blood-sucking mosquito and wish it would go away. But Coraid is bigger now than it was a year ago and, stretching the insect metaphor as far as it will go, it's more like a bee that will have its honey harvested, eventually, by its backers. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.