CloudHealth Technologies, a Boston-based developer of management software for the cloud, announced today that it has raised $12 million in new funding. The Series B investment round was led by Silicon Valley venture capital firm Scale Venture Partners, and was joined by existing investors .406 Ventures and Sigma Prime Ventures.
CloudHealth offers IT services for companies dependent on the reliability and performance of cloud-based software. With so many companies relying on the cloud for data backup, software applications, and more, CloudHealth’s services let companies monitor the performance, analyze how to best maximize all the features of the cloud, and track issues that arise more quickly and affordably.
CloudHealth Technologies chief executive and co-founder Dan Phillips said the company plans to use the funding to continue to hire engineering, sales, marketing and support personnel to keep pace with the ever-growing cloud computing industry.
“There is this ecosystem of cloud vendors forming as the world is moving to the cloud, and the market is moving very quickly,” Philips said. “We are fortunate to be in the middle of that and accelerating like crazy.”
It was also announced that Ariel Tseitlin, a partner with Scale Venture Partners, will join CloudHealth’s board of directors. Tseitlin is no stranger to cloud computing; prior to joining Scale he was the director of cloud solutions for Netflix, a company that has benefitted immensely from being able to store information and media in the cloud.
“I am really impressed in all that they’ve done since I’ve first met the company in 2013,” said Tseitlin. He explained all the great benefits of the cloud, including increased speed for applications and the ability to make offerings available on-demand to customers.
But, Tseitlin explained, “One of the things that organizations tend to find when they start using the cloud is that the complexity of managing those operations goes up quite a bit. At Netflix, we had to build a whole bunch of tools to solve these problems.”
“I really like the fact that CloudHealth is solving exactly the same set of problems,” he said, “because most organizations can’t afford to be on the leading edge with an investment for that kind of innovation themselves, so they are looking for other companies to provide that service.” That was the factor, he explained, that attracted him and Scale and led him to invest in the company.