Data centers

00:00 AM
Connect Directly
RSS
E-Mail
50%
50%

Netezza Nets $20M More

Lands huge round after five customers buy its database appliance. Imagine if they'd sold 10!

Next-gen data center startup Netezza Corp. has received an additional $20 million in funding after landing five customers for its database-acceleration appliance (see Netezza Pockets $20M Third Round).

New investor Sequoia Capital led the round, which brings Netezza's total funding to date to $53 million. Also participating in the round were previous investors Battery Ventures, Charles River Ventures,Matrix Partners, and Orange Ventures.

Netezza's large cash injection indicates that the VC funding wheels are starting to turn again, and it's also a blow to naysayers of such "god box" approaches (see God is Dead and God Goes Down to the Crossroads). While wrapping multiple functionalities together in a huge appliance has sent more than one company spiraling into oblivion since the bubble burst a couple years ago, Framingham, Mass.-based Netezza has landed not only funding but also customers for its box.

"I think it's a proof point that there is interest out there," says IDC analyst Dan Vesset. "They're hitting a market where the data volumes are increasing substantially, and I think the investors are capitalizing on that."

The company has already bagged five paying customers for its appliance, including database marketing services firm Epsilon (see Netezza Breaks Up the Family). Other customers include telecommunications companies and financial services institutions.

Previous
1 of 3
Next
Comment  | 
Print  | 
More Insights
Cartoon
Slideshows
Audio Interviews
Archived Audio Interviews
Jeremy Schulman, founder of Schprockits, a network automation startup operating in stealth mode, joins us to explore whether networking professionals all need to learn programming in order to remain employed.
White Papers
Register for Network Computing Newsletters
Current Issue
Research: 2014 State of the Data Center
Research: 2014 State of the Data Center
Our latest survey shows growing demand, fixed budgets, and good reason why resellers and vendors must fight to remain relevant. One thing's for sure: The data center is poised for a wild ride, and no one wants to be left behind.
Video
Twitter Feed