August 23, 2017

Enterprise cloud provider Skytap raises USD 45 million in funding

The capital was raised at a Series E funding round and brings Skytap’s overall funding to USD 109 million to date.

Seattle based cloud computing startup Skytap today announced that its has successfully raised USD 45 million through a Series E funding round led by Goldman Sachs Private Capital Investing Group, with further participation from existing investors Insight Venture Partners, Ignition Partners and Madrona Venture Group. This latest funding round brings the total amount of capital raised by Skytap over recent years to USD 109 million.

According to Skytap, the new funds will enable the company to grow its engineering, sales and marketing units, while also being used to expand its distribution channels. Skytap says that its average revenue per customer grew 60% year-over-year in Q2 2017 and that its cloud deployment rate has grown 10 times in the last three years.

Speaking after the latest round of funding, CEO of Skytap, Thor Culverhouse elaborated:

Standard public cloud providers have popularized the concept of cloud, helped businesses understand its inherent advantages, and made it a mainstream option for companies building new ‘cloud-native’ applications. According to Gartner, those big public clouds combined will account for less than 25 percent of IT spend in 2020. The other 75 percent of IT spend is on-premises, stuck in the data center.

Skytap Cloud is specifically designed for those traditional, mission-critical enterprise applications that you thought could never leave the data center and live in the cloud.

The cloud is a foregone conclusion. But the unanswered question has been, ‘how can businesses get there without abandoning the massive investments they’ve made over the years, in both time and money?’ With Skytap, companies can take full advantage of the cloud without having to throw away the critical systems their businesses depend on.

Skytap’s current customers include the likes of NBC Universal, GE Healthcare, CA Technologies and OpenText among others, with the company operating 10 data centers globally.

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