VMTurbo grabs $50 mln in ICONIQ-led round


Boston-based VMTurbo, an intelligent workload management solutions provider, has received $50 million in Series D funding. ICONIQ Capital led the round with participation from previous backers Bain Capital, Globespan Capital Partners and Highland Capital Partners.

PRESS RELEASE

(Boston, MA) January 20, 2015 – VMTurbo, the only real-time demand-driven control platform for the software-defined universe, today announced its 18th consecutive record quarter, capping 2014 with revenue growth of 128% year-over-year. Along with strong revenue growth, VMTurbo increased its employee base by 126% and relocated company headquarters to Copley Square in Boston.

A new round of investment led by ICONIQ Capital raised $50 million for continued new product development and company growth. With more than 1,000 customers, including many of the world’s leading money center banks, financial institutions, social and e-commerce sites, carriers and service providers, VMTurbo was proud to grow its customer base in 2014 to include Salesforce.com, Thomson Reuters, Tribune Publishing, Cablevision and Rogers Communications.

“It’s been an incredible year at VMTurbo,” said CEO Ben Nye. “Repeat purchasing grew 222% in Q4 as more and more VMTurbo customers automated control of their virtualized data centers. This customer-driven growth has enabled us to achieve a 234% compounded annual growth rate since inception.”

Market Momentum
“2014 was VMTurbo’s strongest year ever,” said Mo Garad, CFO. “More and more of our customer are experiencing greater resiliency in their virtualized environments as well as full payback in three to six months.”
Key Metrics for 2014 include:

· Achieving 128% year-over-year growth – resulting in a compound annual growth rate of 234% since inception
· According to TechValidate:
o 87% of users surveyed saw more than a 20% increase in resource utilization after deploying VMTurbo in their environment – with 20% seeing more than a 60% increase
o 68% of users surveyed reported more than a 20% increase in virtualization team productivity after deploying VMTurbo in their environment – with 26% seeing improvement of over 40%
o 66% of users surveyed reported more than a 20% decrease in time to resolving issues in their environment after deploying VMTurbo – with 32% seeing a greater than 40% decrease
o Almost 90% of users surveyed saw value within 3 months of deploying VMTurbo in their environment
· More than doubling the size of VMTurbo employee base, to over 250 employees by the end of 2014

Technology Innovation
“VMTurbo Operations Manager is the only control system that relates application demand and infrastructure supply across the entire data center,” said Founder and President, Shmuel Kliger. “Our award-winning platform now includes specific Control Modules for Networks, Hybrid Cloud, Applications, Containers and VDI.”

Key Technology Innovations include:

· Largest release to-date, Operations Manager 5.0, further extends control across the full IT stack including network, hybrid cloud, containers and virtual desktop (VDI) environment control

· New network control enables automated localization of chatty applications, reducing network congestion and latency in east-west traffic while assuring workload access to storage and compute resources

· Integration with Arista Networks EOS+ platform, a software platform for network programmability and automation, to deliver efficient decision automation within Arista environments and optimal placement of virtualized workloads

· Expanded hardware support built into Control Modules for Storage and Fabric, providing customers the ability to drive more comprehensive control of virtualized workloads in converged infrastructure and increased utilization

· New support for OpenStack, in addition to existing support for VMware, Microsoft, Citrix and Red Hat environments

Industry Recognition

“It was an exciting year at VMTurbo full of a number of firsts,” said Geeta Sachdev, CMO. “From the launch of our Green Circle Community in April and being named finalist for “Best of VMworld 2014” in August, to hosting our first annual Octurbofest user group meeting, we’ve seen overwhelmingly positive interest from the larger IT community for our solutions.”

Notable achievements include:
· Launch of the Green Circle Community in April, an online forum for innovators, virtualization experts and forward thinking IT professionals. The community provides a platform for customers, external contributors and VMTurbo employees to engage on industry perspectives, questions and suggestions on the product and knowledge-sharing among community members

· Awarded “Best of VMworld 2014” finalist in the category of virtualization management, chosen from over 200 nominees by judges from TechTarget

· Receiving numerous other awards, such as: 2014 TechTrailblazer’s first place award in the virtualization category, named #26 in Forbes Magazine’s Most Promising Companies, CRN’s 2014 Emerging Vendors and the Bronze medal by Tech Target in their Storage Management category; VMTurbo has recently been named as a finalist in a number of upcoming awards

· Expanding presence and thought leadership in IT community through the addition of technology evangelist Eric Wright, aka @discoposse, to the team

· Hosted first annual Octurbofest in Boston, a day of cloud and virtualization thought leadership with VMTurbo customers, key business partners and industry leaders; VMTurbo is taking the event to the opposite coast in February 2015, with its First Annual Turbofest West in San Francisco

$50 Million Funding Series – What’s ahead in 2015?

Led by ICONIQ Capital, Bain Capital, Globespan Capital Partners, Highland Capital Partners and a number of strategic investors, VMTurbo has raised $50 million in Series D funding, bringing the company’s total funding to date to $77.5 million. VMTurbo plans to use the investment to continue its impressive momentum, including expanding its team both nationally and globally and accelerating development of new demand-driven control modules. The investment marks VMTurbo’s largest private round since its founding in 2011.

ICONIQ Capital, a global multi-family office and merchant bank based in San Francisco, led the Series D funding, and was matched by a collective of VMTurbo’s existing investors, Bain Capital, Globespan Capital Partners and Highland Capital Partners.

About VMTurbo

VMTurbo’s Demand-Driven Control platform enables customers to manage cloud and enterprise virtualization environments to assure application performance while maximizing resource utilization. VMTurbo’s patented decision-engine technology dynamically analyzes demand from applications, containers, network and VDI and adjusts configuration, resource allocation and workload placement to meet service levels and business goals. With this unique understanding into the dynamic interaction of demand and supply, VMTurbo is the only technology capable of closing the loop in IT operation by automating the decision-making process to maintain an environment in a healthy state.

The VMTurbo platform first launched in August 2010 and now has more than 25,000 users, including many of the world’s leading money center banks, financial institutions, social and e-commerce sites, carriers and service providers. Using VMTurbo, our customers, including JP Morgan Chase, Salesforce.com and Thomson Reuters, ensure that applications get the resources they need to operate reliably, while utilizing their most valuable infrastructure and human resources most efficiently.

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