Appcore, a company with on-premise Infrastructure-as-a-Service offerings, has landed a $6 million round of Series B venture funding, showing that on-premise deployments can still play a role for enterprise IT.
Private investors, including some of Appcore’s first customers — Iowa-based telecommunications companies — led the round. A previous investor, Telephone Acquisition Co., also contributed. The investments brings the company’s total venture funding to $11 million and will go toward bringing on more business in North America and Asia.
Founded in 2008 and based in Des Moines, Iowa, Appcore has gained experience in renting racks and delivering software and cloud-based applications — one app provides off-site disaster recovery — to telecoms that already provide their customers with television, internet and phone service. Last year Appcore started expanding its market to other industries, said Jeff Tegethoff, the company’s president. Along with the Des Moines headquarters, the company has operations in Australia, Hong Kong, the Philippines, Singapore and New Zealand.
Appcore delivers its package “anywhere in the world in about 30 days,” Tegethoff said. On-premise deployments can help customers cut latency and protect data, and those advantages have proved more appealing to customers than public-cloud providers such as Amazon (s amzn) Web Services or Rackspace, (s rax) he said.