Avere Systems today closed a $20 million series D funding round that founder and CEO Ron Bianchini said he expects will take the NAS acceleration vendor to break-even and an initial public offering (IPO).
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If he’s correct, the route to the IPO will run through the cloud.
Although Bianchini sold his previous storage company, Spinnaker Networks, to NetApp for $300 million in 2003, he envisions a different outcome for Avere.
When asked if he expected this would be Avere’s last funding round, Bianchini said, “that is our plan. I believe there is an IPO in our future. Our next big focus is break-even, and that’s what we hope this takes us to.”
He said the new funding will be used to beef up sales and marketing for Avere’s FXT Series of edge filers. Bianchini said Avere has just over 100 employees now and he expects to add 30 by the end of the year.
He declined to say how many customers Avere has, but said it is in “triple digits,” and most of them are large enterprises. Since releasing version 4.0 of its operating system in late 2013, Avere has focused on separating capacity from performance by pushing data to the public cloud.
“You can put our product and performance anywhere and put the repository anywhere as well, including the public cloud,” Bianchini said. “We play at the intersection of enterprise and cloud. We’re about driving enterprise performance and features, and doing that with data in the cloud.
Avere began in 2009 selling NAS acceleration appliances designed to improve performance while lowering the cost. It later added global namespace and then WAN acceleration that could move data from the data center to the edge with little latency. Version 4.0 of Avere’s FXT software was the piece that completed the cloud picture. Customers can now use Avere’s FlashCloud software as a file system for object storage and move data to the cloud without requiring a gateway. Avere supports Amazon’s public cloud, and Bianchini expects to add OpenStack and Ceph support soon.
Along the way, Avere went from a company that could help storage giants like EMC and NetApp drive better performance to one that could reduce the need to use their NAS boxes. “With the cloud, people can replace their storage infrastructure with the cloud for the capacity piece,” he said. “I imagine we’ll have fewer friends on the enterprise space, because you can take them out now.”
The big vendors have their own plans for the cloud, which EMC made clear this week with its TwinStrata acquisition.
The funding round, led by Western Digital Capital, brings Avere’s total funding to $72 million. Previous investors Lightspeed Venture Partners, Menlo Ventures, Norwest Venture Partners and Tenaya Capital participated in the round.