Datacenter startup SimpliVity seals $175m for engineering and sales boost

A new funding round for the converged infrastructure software and appliance company is to be pumped into a rapid expansion in 2015.

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SimpliVity CEO Doron Kempel: Expanding engineering and sales. Image: SimpliVity

Converged infrastructure startup SimpliVity says a multimillion dollar investment announced today will help it double engineering and sales teams this year.

The $175m series D funding round, led by Waypoint Capital with previous investors Accel Partners, Charles River Ventures, DFJ Growth, Kleiner Perkins Caufield & Byers Growth, and Meritech Capital Partners, takes the total raised by the Westborough, Massachusetts-based company since its founding in 2009 and launch in 2012 to $276m.

"We'll use the capital to continue growing our engineering organisation, our sales organisation and everything in the middle - product management and support and so forth. It allows us to execute optimally, hiring all these resources, leading to the next phase, which could be an IPO sometime in the foreseeable future," SimpliVity CEO Doron Kempel said.

"Today, 40 percent of our headcount is in engineering and 40 percent is in sales. We're going to be doubling both of them in 2015. We need to make sure we maintain the technological lead and that requires us to continue pushing the technology so any application anywhere in the world, private cloud, public cloud, on-premise, remote - all of it runs on commodity x86 servers powered by the SimpliVity technology."

SimpliVity's principal product is the commodity x86-based OmniCube datacenter appliance, which uses OmniStack software as a controller on VMware vSphere/ESXi to combine all the infrastructure and functions below the hypervisor, according to the company.

Kempel said large datacenter IT infrastructure typically consists of a stack of servers, with VMware, apps, and orchestration on top and a storage switch and highly-available shared storage array below.

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But then there are additional products such as SSD arrays to accelerate certain apps, data-efficiency products designed to condense and deduplicate data through the various phases of its lifecyle, and a variety of data-protection products.

"When you count all those, there could be up to 14 different products, from server all the way down to efficiency protection, performance, and global unified management and those 14 or so products are purchased from as many vendors," he said.

"Then much more importantly, there's the operating expense, which has to do with the people who have to be trained on an ongoing basis and retrained whenever you lose a professional, and the space that this consumes, and the power this consumes - but mainly the complexity of management. This convergence is all geared towards simplification."

Kempel said the company is working on developing its products to function in Microsoft Hyper-V and KVM environments, as well as making them available in a greater range of form factors, and available from more cloud providers, in addition to Amazon Web Services.

Work is also underway on making SimpliVity appliances available in increasingly large federations of connected systems across various sites, managed from a single point.

The company currently sells in 50 countries, with staff in 18 of them, including about 100 field professionals. It sells through about 500 value-added resellers and has shipped approximately 1,500 products to businesses that include a top-five telecoms provider, and a top-five consumer goods company.

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