Feeds

Investors fight off rivals to stuff money in Nexenta's pockets

SDN is H.O.T.: 9 VCs join oversubscribed $24m funding round

Providing a secure and efficient Helpdesk

It seems software-defined storage is the storage world's "cloud", and Nexenta is bang on trend. The ZFS storage array software firm's CEO, Evan Powell, is now stepping aside to become chief strategy officer in the wake of a fourth funding round of $24m, and investors must be hoping the appointment of a seasoned CEO will take the company forward to the hoped-for IPO.

Nexenta supplies NexentaStor, ZFS-based storage array software used to create enterprise class storage arrays from low-cost commodity elements by a raft of partners. These can use disk drives or solid state drives. Indeed Nexenta has just certified SMART Storage's Optimus line of SAS interface SSDs for NexentaStor.

Powell says that the percentage of the storage market taken by the major array vendors is shrinking as open or software-defined storage products, like Nexenta's, take a larger share. And this is what is exciting the venture capitalists.

The company has just received $24m in a D-round of funding. Back in January 2012 it picked up $21m in a C-round, taking total funding to somewhere between an estimated $37.5m to $47.5m. With the D-round that goes up to $61.5m to $71.5m.

Has growth slowed? In January 2012, Nexenta said it had experienced three years of growth exceeding 400 per cent year-over-year, driven $300m of hardware sales through its channel in 2011, supplied more than 4,000 customers, and tripled its workforce. It would have us understand that its growth has not slackened, not at all. In fact:

  • In 2012 revenue grew 100 per cent over 2011, and Nexenta has grown in triple digits for three consecutive years
  • The total customer count exceeded 5,000 and repeat sales to existing customers grew 475 per cent
  • Nexenta has enabled an estimated $400 million in hardware storage sales for its reseller partners.

The D-round was over-subscribed and led by new investor Four Rivers Group, with participation from existing Nexenta investors Menlo Ventures, TransLink Capital, Javelin Ventures, Sierra Ventures, Razor’s Edge, and West Summit Capital. In addition to Four Rivers, two other new investors Presidio Ventures and UMC Capital participated. Seems like there was a rush to join in with nine venture capital funds scenting gold at the end of Nexenta's rainbow. Evan Powell, the CEO for the past five years, is taking a quarter-step back to become the chief strategy officer.

Mark Lockareff is the incoming CEO and Nexenta says his background includes leading or investing "in a number of enterprise infrastructure, software and internet companies during their key growth stages including: ParAccel, Agiliance, Softricity, Model N, Riverbed, Acopia, ProofPoint, and Facebook."

Bridget Warwick becomes Nexenta's chief marketing officer. She comes to the role from the Microsoft-acquired StorSimple, which she joined from HDS, which she joined when it acquired hardware-assisted filer supplier BlueArc. Her job is to get Nexenta's global brand awareness up, always a problem when your software runs on someone else's hardware.

Outgoing CEO Powell said: "Our task at Nexenta is simple: we must build a company that is up to meeting the enormous opportunity of leading the transformation of the storage industry." Gee, don't think small Evan.

Nexenta sees itself as changing from noisy and disruptive classroom genius to a trusted enterprise partner, kind of, we think, like Red Hat is today. The penguin's progress is probably an inspiration to this wannabee Red Hat of storage. ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.