Virtustream, a Bethesda, Md.-based cloud computing provider focused on hosting enterprise applications, has raised $10 million in a Series B round. The round was funded by existing investors Intel Capital, Columbia Capital, Noro-Moseley Partners, and TDFunds, which invested $49 million in Virtustream’s Series A round last year.
Virtustream is among a class of cloud providers focused on serving enterprise customers, particularly those running mission-critical and performance-intensive applications. Virtustream’s xStream platform, in fact, is optimized for enterprise-resource planning (ERP) applications from SAP, Oracle and Microsoft, which aren’t often ideally suited for cloud computing. Virtustream, as well as many of its brethren, also targets enterprise customers with features such as private and hybrid cloud options, stringent service-level agreements (SLAs) and support/advisory services.
Enterprise cloud providers like Virtustream will have to keep on their toes to avoid becoming obsolete as commodity cloud providers like Amazon Web Services boost their enterprise capabilities, but they’re certainly in a good position right now. Aside from Virtustream’s steady stream of VC money, fellow enterprise cloud providers Terremark, Savvis and OpSource were acquired this year by large telcos looking to bolster their cloud computing capabilities. Recently, GoGrid, which also has an enterprise-heavy customer base, changed CEOs in order to keep up with increased business.
If they can supplement their newly deep pockets with big cloud contracts to pad the bottom line, providers like Virtustream should have enough money and breathing room to seek out and invest in strategies to stay ahead of the enterprise-cloud curve.