There’s a lot of juice left in the converged infrastructure market, or at least VCs think so. Case in point — Nutanix just netted $101 million in Series D funding, bringing total investment up to $172.2 million over four rounds. That puts the company valuation at a cool one billion or so.
Yes that’s a lot of dough, but Nutanix sees a market topping out at a whopping $100 billion as companies update and streamline their data center hardware, said Howard Ting, VP of product management for the San Jose, Calif. company. So this is a massive opportunity and there are also a ton of competitors circling it, including Pure Storage, Tintri, and Nimble Storage.
Another rival, Scale Computing, is apparently in an interesting alliance with Dell whereby Dell’s resellers can offer Scale’s converged hardware as needed. Still another, Simplivity, recently completed a $58 million round. But Nutanix sees itself going up against the legacy hardware giants — the Hewlett-Packards(s hpq), IBMs(s ibm) and Dells of the world, and this funding will fuel that battle, Ting said in a recent interview.
“It’s not that we need all this money but it capitalizes us well going forward,” he said.
Nutanix employs about 400 people now, up from about 100 about 15 months ago, when it announced its last round. Now it will continue to hire and invest in R&D, to improve resiliency and management capabilities.
“We also want to attack adjacent market opportunities including analytics to make sure our users can view what’s happening in their data center, and hybrid cloud. Public cloud is attractive in some scenarios, but private is where we play mostly and we want to stitch those worlds together,” Ting said.
As for market traction, Nutanix claims more than $100 million in sales in the two years its product has been on the market — customers include companies like eBay(S eBay), PricewaterhouseCoopers, the U.S. Air Force, and BART.
The new round was led by Riverwood Capital and SAP Ventures with Morgan Stanley Expansion Capital and Greenspring Associates also chipping in as new investors. Past backers Lightspeed Venture Partners, Khosla Ventures and Battery Ventures also participated.