VeloCloud Networks, Inc. a company pioneering solutions for the Cloud-Delivered Wide Area Network (WAN) has just raised $21 million in venture funding. The exercise is led by venture capital firms New Enterprise Associates (NEA) and Venrock and an incubator firm, The Fabric. NEA is a leading venture capital firm with investments across multiple stages, sectors and geographies with approximately $13 billion in committed capital while Venrock, which was originally established as the venture capital arm of the Rockefeller family is an investor for a long list of successful companies, including Apple Computer and Intel. Fabric, a company co-creator, incubates and invests in the next generation of innovative technology companies via early stage partnerships.
VeloCloud's solutions aim to address the need for increased capacity and capabilities of the WAN in serving both enterprise and retail customers. The adoption of mobile lifestyles which sees more and more people being connected via mobile devices necessitates cloud-based access to various applications and services. According to VeloCloud, the existing rigid WAN architecture is not able to cater for this rapidly growing demand as it delivers services piecemeal on hardware appliances over difficult-to-provision network connections. VeloCloud also said that it provides services that deliver enterprise grade performance, visibility and control over both Internet and private networks, combining the economy of the Internet with the flexibility of the cloud.
The funding will enable VeloCloud to enhance its offering and market presence, especially as the market experiences accelerated growth in the number of cloud based applications that carry rich content, not only for mobile users but also for enterprises who are migrating to more efficient IT systems and cloud based applications for their operations and management in efforts to reduce their overall IT capital expenditures and to adopt systems that are leaner, scalable and more flexible. VeloCloud, in its statement, highlighted that the combined Enterprise WAN Equipment and Private WAN Services market is approximately $32 billion, citing estimates by Gartner and Forrester Research.