Feeds

Disk-over-Ethernet startup trousers another $50m

VCs pump more dosh into Coraid

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.