SimpliVity today announced the results of its Series D funding round, raising $175M, at a valuation of over $1 billion.
I’d like to use this opportunity in order to thank our customers, partners, investors and the SimpliVity team; as well as shed some light on what this means for SimpliVity and our ecosystem.
First, I’d like to thank our customer and investor, Waypoint Capital, who deployed SimpliVity systems across 5 global locations, and moved 100% of its applications to run exclusively on SimpliVity OmniCubes, all managed globally from a single site and from a single screen. Waypoint Capital, an investment firm with offices in Geneva, London, Boston, Jersey Island and Luxembourg, was going through a technology refresh and sought to drive simplicity and operational efficiencies for their business. According to Waypoint, deployment of SimpliVity reduced their TCO by 3x (reduced # of servers by 35%; increased storage capacity by 12x; increased compute power by 4x). As an investment firm, Waypoint realized the transformational value of SimpliVity’s technology and asked if they could invest in SimpliVity. On their conviction of SimpliVity’s technological superiority — “years ahead of the market,” to quote Waypoint CIO –and SimpliVity’s eventual leadership of the Hyperconvergence category, Waypoint Capital invested $150M.
Second, I’d like to thank the rest of our customers and partners who made our job of raising money very easy. We asked investors to speak with customers and partners – and they did. We secured $175 million, bringing the total funding to date to $276 million. SimpliVity is now valued at over $1 billion, after just 23 months since we started shipping product.
HyperGrowth of HyperConvergence leads to HyperValuation
Here is what our investors tell us they learned from our customers and partners; and how they think about the SimpliVity opportunity:
When compared with IT infrastructure companies that IPO’d or filed for an IPO in the last decade, it appears that SimpliVity’s sales trajectory is 3-4 times faster:
Indeed, SimpliVity recently announced record year over year growth in 2014 – increasing nearly 500% in sales and customer acquisition and more than 270% in headcount across 18 countries.
Why? What explains such rapid product adoption?
The product and the underlying technology does.
In short, it boils down to the profound value proposition that is delivered by the product. SimpliVity has developed True Hyperconvergence. Not satisfied with just integrating servers and storage, SimpliVity developed a revolutionary new data architecture that is suitable for the needs of 21st century CIOs. It delivers the best of both worlds: x86 cloud economics with enterprise-grade capabilities: performance, data protection, data efficiency, and global unified management. SimpliVity uniquely assimilates all IT infrastructure below the hypervisor – as many as 8-12 disparate data center products – into a single building block of shareable resources, in a 2U form factor. 65% of our customers run all of their applications, across sites, entirely on SimpliVity. Complete transformation! If you enter their data-centers, you will not find any infrastructure products by any third party vendors outside of SimpliVity: storage, backup, replication, deduplication and compression, cross site management, or cloud gateway, etc. All such IT infrastructure functionality (with the exception of security) is delivered to such end-users by SimpliVity, giving rise to 3x TCO improvements.
The following illustrates the results that SimpliVity customers are experiencing:
1. 65% of our customers run 100% of their IT Applications on SimpliVity
2. >1/3 of our customers achieve >100:1 or better data efficiency
3. >1/2 of our customers achieve >50% performance improvements
Our customers and partners suggest that others who evaluate hyperconverged solutions use the following simple checklist.
This is an important validating milestone for SimpliVity, for our customers and partners, and, in my humble opinion, an indication of a sea change in IT Infrastructure: 65% of our customers run 100% of their applications, across sites, entirely and exclusively on SimpliVity.