Platform9 raises $26 million to help run distributed cloud clusters
Platform9, which bills itself as an “open distributed cloud company,” today announced the closing of a $26 million funding round led by Celesta Capital with participation from Cota Capital, NGP Capital and others investors. CEO Bhaskar Gorti said the new funds will be used to drive Platform9’s go-to-market strategy and product research and development, particularly as the company seeks larger-scale enterprise deployments.
Platform9 was founded by Sirish Raghuram, Madhura Maskasky, Bich Le and Roopak Parikh, who worked together to create several early virtualization products. Their hypothesis was that open source ecosystems would grow to offer a wide range of cloud offerings, but companies needed an easier way to operationalize them. A recent McKinsey report suggests that less than 25% of cloud initiatives meet their time-to-market and cost goals.
Platform9 ostensibly delivers this by allowing developers to run Kubernetes – the open source platform for managing autonomous workloads – and other cloud-native technologies on distributed cloud services. It works with existing infrastructure to create cloud-native clusters with monitoring capabilities and integrates with third-party tools. Here, “cluster” refers to a set of worker machines, called nodes, that run “containerized” applications with the dependencies and services needed to run them.
Platform9 offers a number of tools to help manage clusters running in the cloud, whether in the public cloud or on-premises. Picture credits: Platform9
Using Platform9, developers can install, operate, and maintain clusters remotely through a software-as-a-service management plane. Its capabilities include automated security patches, on-demand upgrades, and “self-healing” clusters, as well as multi-version support and audit logging.
Platform9’s service powers 40,000 nodes across private, public and edge clouds, according to Gorti.
“To create a more open cloud experience, the Platform9 co-founders studied emerging open source work in the infrastructure space, including Apache CloudStack, OpenStack, LXD, and Kubernetes,” Gorti continued. “They were inspired by the agility developers gained by using public clouds, but wanted to challenge the assumption that this could only be achieved by confining businesses to a walled garden.”
While Gorti declined to discuss revenue, he said Platform9 — which has $100 million in funding to date — currently has more than 60 enterprise customers and 120 employees. Activity increased by 100% from 2021 to 2022, while net revenue retention, which calculates total revenue less revenue loss (e.g., contract expirations, cancellations, and downgrades), increased by 132%.
In addition to the funding, Mountain View, Calif.-based Platform9 announced two executive team appointments: Emilia A’Bell and Ravi Jacob. A’Bell comes from senior sales positions at Oracle and Nokia, while Jacob was previously CVP at Intel.