Cloud storage startup Nirvanix said today it’s raised an additional $5 million from existing investors to continue the expansion of its business. The funding, from Intel Capital, Mission Ventures, Valhalla Partners and Windward Ventures, brings the total amount raised for the San Diego, Calif.-based startup’s Series A round to more than $23 million.
Nirvanix currently competes with cloud storage service providers such as Amazon’s (s AMZN) S3 and Rackspace’s (s RAX) CloudFiles, but as it moves into enterprise cloud storage it could also go head-to-head Zetta, which came out of stealth mode earlier this month and has a cloud storage offering built on proprietary hardware that provides high levels of redundancy.
Nirvanix owns five data centers where it stores customer information, and offers a five nines service-level agreement around reliability of customers’ data. In March, it announced a deal with Dallas Houston-based hosting company The Planet that gives Nirvanix a storage node in the center of the country and allows it to offer cloud storage to The Planet’s enterprise and SMB customers.
The idea of storing some types of enterprise data in the clouds is an idea whose time may finally have come. As Geoff Tudor, founder and senior VP of business development and product strategy with Nirvanix, outlined earlier this month in an article about bandwidth needs associated with storage in the cloud, it’s becoming much more expensive for companies to own their own storage facilities, especially as they’re increasingly required to archive data that may not be essential to their day-to-day business.