Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

BlueArc Returns to Trough

BlueArc is at it again. The high-end NAS vendor returned to the VC well for $29 million in funding. The round comes one year after BlueArc grabbed $15 million. Its total funding stands at $204 million. (See BlueArc Pulls In $15M More.)

BlueArc CEO Mike Gustafson plans to use most of the new cash to expand sales and marketing with product development also on the list. But he won't say for sure whether this is the last funding round for BlueArc. "I'm very comfortable this funding round will get us through profitability," he says. "If we take more, it will be for growth -- like this round."

According to Gustafson, BlueArc will expand into new geographic areas, such as Europe and Asia-Pacific, and pursue new partnerships and licensing deals to add functionality to its NAS platform. The company has already been hiring aggressively the past two quarters and expects to expand headcount from 150 now to 175 by the end of the year.

It's a familiar scenario by now, one that's been repeated for more than three years: BlueArc gets funding, predicts profitability and possible IPO in coming months. (See BlueArc Wallows in $47M Haul and BlueArc Still Hot for IPO.)

Perhaps next year will actually see BlueArc reach the goal of profitability. BlueArc claims more than 160 customers and has won high marks from analysts and customers with its new Titan 2000 systems rolled out in February. (See Genome Sequencing Center at Washington U. and BlueArc Beefs Up Titan.) But when will that success translate into a successful business model for a company whose primary competitors are EMC and Network Appliance?

  • 1