Mirantis Lands $100M in Funding, Backing From Intel

mirantisdealPure-play OpenStack vendor Mirantis has announced  $100 million round of funding in an investment led by Intel Capital, which includes a partnership with Intel that the two companies hope will fuel enterprise adoption of OpenStack.

The funding is made up of a mix of equity and spending. 75% of funding (that’s $75M) came from the equity side, according to an SEC document filed for the round

This isn’t the first big round of funding for Mirantis, just ten months ago the company announced $100M in Series B funding, which included investments from Insight Venture Partners, Ericsson, SAP, and August Capital. In 2014, Mirantis made the largest ever OpenStack sale ever with a $30 million deal with Swedish telecom company Ericsson.

OpenStack is a free, open-source cloud platform that is primarily deployed as an infrastructure as a service offering.

OpenStack was launched in 2010 by Rackspace and NASA to create components for building public and private clouds on standard hardware and to give an open-source alternative to proprietary public cloud infrastructure vendors such as Amazon Web Services, Microsoft Azure and Google Cloud.

Mirantis is a “pure-play” version of Open-Stack— and open, un-proprietary platform.

Mirantis’s mission, according to Mirantis President and CEO Adrian Ionel, is to “move companies from an expensive, lock-in infrastructure to an open cloud that empowers developers and end-users at a fraction of the cost.”

 

Since its launch in 2010, OpenStack has attracted dozens of developers, though the field has  recently consolidated through a series of mergers and acquisitions. Competition in the market is fierce—Mirantis is facing several large legacy vendors touting their own flavors of OpenStack, including IBM, Oracle, and HP.

Additionally, the OpenStack platform as a whole faces stiff competition from large, well-established proprietary cloud platforms such as Amazon Web Services, Google Cloud Platform, and Microsoft Azure.

In order to truly compete with cloud giants such as AWS, OpenStack and Mirantis will need to make major inroads with enterprise customers, which is exactly what Mirantis and Intel hope to achieve with their new financial and technological partnership.

“The deal here is that we’re partnering with Intel to put a lot more dollars into making OpenStack enterprise-ready sooner,” Mirantis Co-Founder and Chairman Alex Freedland told ZDNet.

A partnership with Intel will allow Mirantis access to computing resources at a scale previously unaffordable to the company, which should help the open-source cloud computing company address some persistent issues with scaling.

On its end, Intel will benefit from the partnership by accelerating OpenStack development and deployment for customers running its hardware.

“This collaboration agreement allows us to have an understanding of Intel’s roadmap and we’re able to make sure OpenStack is optimized for where Intel is going as well. Intel today is the dominant platform for scale-out commodity hardware. So this is a very important partnership from that perspective,” said Freedland.

Jeff Edwards
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