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Pivot3 secures $12 million in funding for hyper-converged expansion

Hyper-converged infrastructure vendor Pivot3 secured another $12 million in funding this week, bringing its total funding to about $100 million in 10 years.

Pivot3, based in Austin, Texas, has been selling hyper-converged systems longer than better known (and better funded) competitors Nutanix and SimpliVity. But Pivot3 customizes its systems to go after targeted markets such as video surveillance and VDI while the others are more data center-centric.

Pivot3’s vSTAC family of hyper-converged systems all run on the same vSTAC 3 operating system but are packaged with applications that support specific verticals.

Pivot3 began selling to the video surveillance market and then added solutions for VMware-based Horizon virtual desktop deployments. CEO Ron Nash said the company has installed hyper-converged infrastructure solutions in more than 1,000 customer locations.

“The underlying technology is hyper-converged,” he said. “We take the same product and package it to solve a business problem for the business users. Most of our customers don’t know that is what they are using, particularly in the video surveillance market since they are not technologists. One of our customers is a bunch of hospitals in the United Kingdom. They use the hyper-converged infrastructure and VDI but the staff knows it as a production enhancer. They see it as a production tool.”

Nash said the new funding will be used to add vertical products, which will involve new partners.

“We’ll have more solutions for vertical markets and that is where the partners come in,” said Nash. “They have additional applications. The strategy for a company this size is to do what it needs to do to go public. We think this company has a broad enough technology that we can be an independent company as some point. We are on that path.”

The funding round was led by new investor S3 Ventures and current investors InterWest Partners and Mesirow Financial.

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