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Start-Up Metacloud Gets Ready for Big Funding

Stocks in this article: AMZNDATAVMW

NEW YORK ( TheStreet) -- Metacloud, the Los Angeles-based IT outsourcing start-up is likely to announce a large venture capital funding round within the next few weeks, said co-founder Sean Lynch. The proceeds will be used to help the company grab market share through the build-out of its marketing and sales force, Lynch said in an interview earlier this week.

Late last year, Metacloud said venture capital firm Storm Partners and former Yahoo! CEO Jerry Yang's AME Cloud Ventures invested an undisclosed sum of money in the company, which was founded in 2011.

Lynch said the new round of funding will be "significant" relative to the size of the company. Up until now, the company has invested most of its capital in engineering and customer support.

"Note that this is in stark contrast to many of our competitors who have invested in marketing first and product development second," said Lynch. "Now it's time for us to sell."

"We have more commercial traction than probably anyone else in the OpenStack space, yet we're relatively not well known," he said. "I think we'll be much more well-known over the coming months as we really start to pour a lot of investment fuel on marketing." Just this week, Metacloud announced the release of its upgraded flagship, enterprise OpenStack-based operating system product Carbon|OS. OpenStack is an open-source cloud computing platform.

Though Metacloud has been a quieter player in the cloud world, it has already attracted a number of global Fortune 20 companies who have had their private data centers operated by Metacloud since April 2012.

Most recently, the company signed on two large media streaming firms; a big Amazon (AMZN) customer who will be moving to Metacloud in about two months; and a multibillion-dollar multinational hardware company that has agreed to begin shipping out server hardware powered by Metacloud software.

Recently IPO'd Tableau Software (DATA) has been a Metacloud customer since June of last year after transferring some of its private data center needs to Metacloud from VMware (VMW).

Metacloud said that it differentiates itself from peers by charging customers only a nominal per socket per month subscription fee for its services and basically provides its software and ongoing software updates for free. Furthermore, Metacloud said its Carbon|OS product delivers a public, cloud-like experience within the enterprise customers' own data centers, giving them a safe and easy way to access their data.

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.

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