Dell Cloud OEM Partner DynamicOps Gets $11M

Burlington, Mass.-based startup DynamicOps has raised $11 million in Series B funding from Sierra Ventures, Next World Capital and investment bank Credit Suisse’s Next II venture group. As I reported in October, DynamicOps emerged as the commercial materialization of an internal virtualization management project within Credit Suisse (s cs) in 2008, and it has since expanded into the private cloud computing space. By way of an OEM deal, DynamicOps’ Cloud Automation Manager software provides the self-service component of Dell’s (s dell) Virtual Integrated System management suite. Given its already-solid foundation, the new capital could go a long way toward making DynamicOps a household name in the private-cloud space.

That DynamicOps has an existing customer base to which it can pitch its Cloud Automation Manager distinguishes it from most private-cloud startups that must start their sales efforts from Step 1. I noted in my earlier post that DynamicOps was able to build a solid customer base for its virtualization management software, Virtual Resource Manager, based in part on its already having been proven within Credit Suisse. As VP of Marketing Rich Bordeaux told me then, one customer currently manages 30,000 VMs and virtual desktops and is looking to have more than 60,000 within 18 months. Now, it has $11 million more “to fund global sales, marketing and development of its private cloud automation solutions.”

But the disclaimer that applies to all private-cloud efforts — be it, Nimbula, Abiquo, Eucalyptus or whomever — applies to DynamicOps, as well, which is that we’ve still yet to see any real uptake (publicly, at least) of these products beyond service providers and some proofs-of-concept within traditional businesses.  The technology is generally innovative, and surveys regularly show relatively high interest in private cloud overs public clouds, so it seems like mainstream adoption shouldn’t be too far out. It wouldn’t too surprising to see DynamicOps be the company to break through — even beyond the users it garners through the Dell integration — but we’re still waiting for evidence that anybody can.

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