September 12, 2018

Cloud computing firm Packet raises USD 25 million in Series B round

The cash infusion is aimed towards accelerating product development for deployers of edge computing infrastructure.

Cloud computing

Cloud computing firm Packet have raised USD 25 million in the Series B round of funding led by Third Point Ventures. With this cash infusion, Packet aims to focus on product development in a bid to provide a world-class edge computing infrastructure to telecom companies that are looking to reduce latency and network costs.

According to Packet, telecom companies in the U.S. market are contemplating a build-vs-buy strategy when it comes to cloud infrastructure. They claim that while a build strategy gives telcos total ownership of the infrastructure but a buy strategy saves production and investment cost.

By raising USD 25 million in Series B, Packet believe that they will build AWS-like cloud infrastructure to support telecom players in the U.S. with their edge-computing ambitions. They say that Packet will aid these players in solving technical and logistical issues pertinent to building the cloud infrastructure for these enterprises.

Packet say that in addition to Third Point Ventures, there are companies like Battery Ventures, JA Mitsui Leasing and Samsung NEXT who have contributed to the funding. They also added that Packet expects the highest concentration of demand to be based out of the U.S, Western Europe and some parts of Germany and the U.K.

Speaking about their customers, Ihab Tarazi, CTO at Packet, commented:

Most are in the discovery phase, and that’s true of companies Packet executives have been working with. Some of them are simply waiting to see how adding an edge site to their network will impact the latency on their wireless networks, while others have specific strategies they’re trying to implement, such as deploying next-generation 5G networks.

The cloud computing firm says that to support this development, they intend to seek services from cell sites and co-location providers like EdgeConneX, Equinix, and Interxion. Industry experts claim that this move will intensify cloud race in the U.S. market, especially amongst startups like Lacework and the likes who have raised USD 24 million to fortify their presence.