Cloud tech firm ComputeNext secures $4M from angel investors
ComputeNext, a cloud technology startup based in Bellevue, Washington, raised $4 million last week, VentureBeat reported citing a regulatory filing submitted to the Securities and Exchange Commission.
The most recent funding round was backed by angel investors and was part of a $10 million round. So far, ComputeNext's has already raised a total of $8 million. A GeekWire report on the matter said the fundraising was undertaken to help form its sales team and double their Bellevue workforce. Founded by Sundar Kannan who formerly worked at Microsoft's Windows Azure team, ComputeNext also has a team of over 50 employees in India.
The startup was in stealth mode for over three years before it launched its cloud brokerage service last year. By putting together various cloud services from different vendors in its platform, ComputeNext makes the normally complicated cloud market easier to grasp. As an e-commerce website focused on cloud infrastructure, ComputeNext is a reseller of services from various partners, including HP Cloud, IBM SoftLayer and Joyent. It earns by getting a small cut from every transaction. Cloud customers can narrow down the kind of service they want by filtering the computing power, kind of software, amount of storage and what it is going to be used for. In addition to the services from its partners, ComputeNext also has its own cloud computing solutions, VentureBeat reported.
In an interview with GeekWire, Kannan described ComputeNext as an "Expedia for cloud computing." He added, "It's what we call an end-to-end marketplace. You can access our site with a single sign-on, buy resources from any provider, procure it, provision it, pay for it and bill it as well."
Although it rivals with Gravitant, AppDirect and other cloud brokerages, ComputeNext said it is their end-to-end marketplace capability that makes them different. In an email, ComputeNext Marketing Chief Eamonn Colman told Venturebeat, "Innovation is coming mostly on the economic models of cloud procurement not the use and management of it."