San Jose, California-based startup Velostrata came out of stealth mode today to unveil what it says is the "first real-time hybrid cloud software." The company said its offering, currently being beta tested by several enterprise customers, reduces obstacles to hybrid cloud adoption by leaving storage on a customer's premises while handling varying workloads on demand in the cloud.
That approach lets business users avoid the security and compliance risks associated with off-premise storage, the company said. It also reduces customers' needs to "overprovision" their data centers or pay for costly cloud-based block storage, according to Velostrata.
Velostrata today also announced that it has raised $14 million in Series A venture capital, with funding led by Norwest Venture Partners and Greylock IL Partners. The company said it plans to use those funds to "further develop the product roadmap" and build its North American and European sales, marketing and support teams.
'Frictionless' Hybrid Clouds
CEO Issy Ben-Shaul (pictured) and chief product officer Ady Degany, co-founded Velostrata after working on optimization, intelligent streaming, caching and storage technologies at a number of other companies. Ben-Shaul was previously CTO and co-founder of Actona, a WAN optimization company acquired by Cisco in 2004. Degany was most recently in charge of product management and marketing at the storage gateway firm StorSimple, purchased by Microsoft in 2012.
"Our vision for Velostrata is to enable frictionless hybrid clouds for any workload in real time," said Ben-Shaul in a statement. Most hybrid cloud deployments today are limited because "there are just far too many barriers involved for general-purpose use," he added.
Most customers, "don't want to move their large production data assets permanently to the cloud," he said, adding that Velostrata's technology eliminates such barriers to adoption.
"Velostrata has been working with dozens of companies since March 2014 as part of its early access program," a spokesperson for the company told us. She added that those early adopters span a variety of markets, including automotive, manufacturing, healthcare, financial services and technology.
'Decoupling Compute from Storage'
Among the companies currently testing Velostrata's technology are Guardian Industries Corp., a manufacturing firm; TechSmith; and Just Energy, a U.S.-based energy company. Troy Jennings, team lead at Just Energy, said Velostrata's service "takes something that is really complex and makes it incredibly simple."
Brian Pillar, IT manager at TechSmith, added that Velostrata's technology has reduced the costs and risks associated with the hybrid cloud by providing the company with "the flexibility to move workloads back and forth between my data center and the cloud in minutes while keeping the storage on-premises."
Organizations that beta tested Velostrata's technology evaluated its performance for a number of primary use cases so far, including data center extension, cloud bursting, storage consolidation, hybrid disaster recovery and development/testing.
"Velostrata's approach of decoupling compute from storage could be a way for businesses of all sizes to gain the elastic workload capabilities of hybrid cloud without compromising application performance or data security," noted Colm Keegan, senior analyst at Enterprise Strategy Group.
Cloud adoption is moving into a second wave in which users are looking to the technology as a means to "fuel innovation, growth and disruption," according to a Cisco-sponsored study by the analyst firm IDC released today. The study found that 53 percent of companies expect cloud computing to help increase their revenues over the next two years, although only 1 percent of organizations today have optimized cloud strategies.