SimpliVity’s $175M Funding Round Demonstrates Hyperconvergence Outcomes
I’m really not that much of a trend follower in most cases and tend to take a very, very skeptical eye toward things that get overhyped. However, when it comes to hyperconverged infrastructure, I’ve jumped in with both feet and truly believe that this data center architectural option has the potential to help organizations transform IT. And, I’m not alone. This week, hyperconverged infrastructure powerhouse SimpliVity announced that they have raised a whopping $175 million dollars in their Series D round, accompanied by a newly minted $1 billion company valuation after less than two years of shipping product.
That’s a whole lot of money and, while its an incredible opportunity for SimpliVity to grow even faster than they have been, I think that the underlying story is far more compelling. In their announcement for the funding, SimpliVity indicated that Waypoint Capital led the process to getting to $175M. One of the reasons that Waypoint was interested in doing this was that they started out as a SimpliVity customer and experienced first-hand the transformation that came with adoption of hyperconverged infrastructure. I’m not going to rehash the whole story — SimpliVity has produced an excellent case study on the whole thing and it’s a really good read.
I’ve talked to many people about hyperconvergence and it’s impact on the data center, but also understand the challenges that companies face when considering such solutions. In fact, I recently wrote a post here at Enterprise Storage Guide on some of the resource challenges that people face when comparing hyperconvergence to traditional infrastructure. In that post, I indicate that, yes, there may be the potential to “waste” resources in a linearly scaled environment but I absolutely believe that the one-time cost of this “waste” is far outstripped by the economic and operational benefit potential in the technology.
It’s clear that this space is exploding, with new entrants all the time and with the big players — VMware and EMC — jumping it with both feet and bringing the major server vendors along as partners. We’ve seen companies like Nutanix ink major deals with Dell — and also raise hundreds of millions of dollars. We’ve seen Pivot3 raise $45 million dollars recently. We’ve seen Cisco form deep partnerships with both SimpliVity and Maxta with great success. We’ve seen Maxta grow from a software-only solution to a full appliance-based solution in partnerships with every major servers vendor on the planet. We’ve seen Scale Computing absolutely kill it in the SMB space. We seeing new upstarts such as Stratoscale and Yottabyte enter the increasingly crowded space with new hyperconverged and software-defined approaches to solving the data center problem.
It’s All Plumbing
I don’t know about you, but I don’t want to mess with the pipes in my house. That’s where we’re headed with the data center. Organizations are tiring of hiring more and more expensive people to manage increasingly complex data center environments. This is the reason that solutions like hyperconverged infrastructure are so popular; they allow companies to “set it and forget it” — at least to a point — when it comes to the data center. Obviously, there is still effort involved, but combining resources achieves some economies of scale while allowing CIOs to begin to rethink how IT does business.
And, with all that said, congratulations SimpliVity!