IVP Worms Its Way Into Aster Data Systems Deal

Aster Data Systems, which makes software that allows companies to build massively scalable databases on commodity hardware, has raised an additional $5 million as part of its Series B round of funding from Institutional Venture Partners. Aster had originally closed $12 million back in January, but CEO Mayank Bawa says the company extended the round in a nod to the recession — and for the opportunity to work with IVP General Partner Steve Harrick.

Harrick was an investor in open-source database MySQL, which was sold to Sun Microsystems (s JAVA), and Bawa says Harrick’s knowlege in the database world will be helpful as Aster tries to beat out the larger data warehousing players such as Teradata (s TDC) and Netezza (s NZ), as well as smaller competitors like GreenPlum.

With more people offering up more information about themselves online, the need for data warehousing and analytics are pressing. However, the existing giants in that space offer products that are expensive to use on a massive scale. That has pushed web site owners such as MySpace (which uses Aster’s software delivered as an appliance) into using tools from companies like Aster to build their own data warehouses for less. For those that want to avoid owning their own servers and appliances, Aster two weeks ago announced the availability of its software on both the Amazon Web Services and AppNexus clouds.