Scale Out Provider Cloudscaling Raises $10M With Investment From Juniper And Seagate, Networking Takes Center Stage

Posted: May 22, 2013 in Enterprise, GT
Tags: , ,

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Cloudscaling has raised $10 million from Trinity
Ventures, Juniper Networks, and Seagate
Technologies in a deal that shows how software
defined networking has become a focal issue for
companies building out their own clouds. Cloudscaling delivers an OpenStack-powered cloud
infrastructure system for enterprises, SaaS providers
and cloud service providers. The company
foreshadowed a deal with Juniper when it announced
the company would provide Cloudscaling with its
virtualized networking controller. That deal was precipitated by Juniper’s acquisition of Contrail
Systems. The startup raised $10 million last July
from Khosla Ventures. By December, Juniper had
snatched up the company for $176 million. Network controllers have become a hot topic as more
cloud projects get underway. The importance stems
from the need to scale out networks in an affordable
manner. Adding more hardware just gets too
expensive. Virtualizing the controller means that the
data flowing through the pipes can be managed in a granular way, optimized through software so the
network can be used efficiently without lots of
spillover costs for additional hardware. Contrail points to how Cloudscaling has positioned
itself with a focus on providing networking for its
customers building out enterprise and SaaS clouds. It
puts the company in the same space as VMware-
owned Nicira and BigSwitch. The difference for
Cloudscaling comes in its dual focus on software to build out programmed cloud systems and SDN to give
it scale and better manageability. Juniper, for its part, has spent a lot of time focusing
on advancing its silicon and keeping on pace or even
in front of the likes of Intel, Bias said. The company
has also hired top-talent. For example, they hired Bob
Muglia, a lead executive at Microsoft who oversaw
the development of Windows Azure. Muglia now heads an entire division at Juniper dedicated to
software. For Seagate, a traditional hard drive company, the
opportunity is in providing the storage infrastructure
and partnering with Cloudscaling and other providers
such as Egnyte. It is also active in OpenStack and
OpenCompute, the Facebook-led effort to open
hardware to make it more adaptable for the new, cloud oriented infrastructures of the world. Cloudscaling represents the demand for scale out
infrastructures. Data is spreading but for companies
to keep up, they need the networking to extend but
without adding a sprawling array of big hardware
boxes. Instead they need software to virtualize the
network so it can spread far and wide.

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