Nutanix, a San Jose, Calif.-based storage virtualization specialist, announced today that the company raised $101 million in a Series D round of funding. The latest infusion brings the company's valuation to $1 billion.
To date, Nutanix has raised $172.2 million, the bulk of which was generated by this latest round, which was led by Riverwood Capital and SAP Ventures. Morgan Stanley Expansion Capital, Greenspring Associates, Lightspeed Venture Partners, Khosla Ventures and Battery Ventures also backed the company in what Nutanix describes "largest single financing round in the history of the converged infrastructure market."
Nutanix's ClusterServer virtualizes network storage, in effect allowing data center operators to scale up their web, cloud and business apps without investing in separate storage area networks (SANs). The company's converged compute-storage architecture -- similar to OmniCube from rival startup Simplivity and mimicking the tech used by Google and Facebook -- creates a storage foundation "data I/O is local to the server, yet behaves like centralized storage," according to the company's website.
The company's hyperconvergence approach has caught on, according to Nutanix CEO Dheeraj Pandey. "Adoption of web-scale computing, and Nutanix's Virtual Computing Platform in particular, has grown explosively over the last two years, yet we've only scratched the surface of this $100 billion hybrid computing market," claimed Pandey in a company statement.
By Nutanix's estimates, in the two years since the company launched, it has crossed the $100 million mark in lifetime sales and has 13 customers that have paid over $1 million. Customers include eBay, Toyota and Orange Business Services. In a blog post, Pandey wrote, "The revenue growth, the geographical reach, the employee and partner growth, are higher velocity than anything the world of infrastructure software has seen in a long time.
SAP Ventures managing director Jai Das hinted at tighter relationship between Nutanix and his parent company. Describing Nutanix as "a best-in-class platform to run all virtualized enterprise workloads," he said his company will be helping the startup "leverage the SAP ecosystem" and looks "forward to assisting the team on closer alignment with enterprise business applications" to accelerate growth within the Global 2000.
The funds will earmarked for sales, marketing, support, research and development and to fuel its global expansion plans, according to the company.
Pedro Hernandez is a contributing editor at InfoStor. Follow him on Twitter @ecoINSITE.
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