VeloCloud, the SD-WAN startup, got a $35 million backing from giants Telstra and Cisco
In the Series D round of VeloCloud, both Cisco and Telstra chipped in to earn the firm $35 million which is being used for carrier deployments and in supporting the now larger enterprise.
This amount means a lot to VeloCloud as it will facilitate lots of activities given the ambitiousness of the firm at the moment in the communication sector. As one of SD-WAN’s firms, the deal comes at a time when SD-WAN and VeloCloud are making expansions given the heightened globalization rates being realized around the world.
The Series D round was led by the reputable Hermes Growth Partners. On the list of the contributing firms were names such as Telstra Ventures and Cisco Investments which is already an investor in the firm. Another contributor of repute was the investment fund of the government of Malaysia called Khazanah Nasional Berhard. With the $35 raised during this round, the firm, based in Mountain View California, has a fund of $84 million. At such a difficult time to raise funds, VeloCloud must be doing some great business to deserve this amount of capital from large firms.
Expectation of the Tech Companies
The tech company is expected to harness the funds in expanding its business to provide enough bandwidth to support even bigger carrier and enterprise deployments. Also on the list of the items to benefit from the money is the acceleration of the development of the new SD-WAN network product. What has surprised many people is the fact that most of the funding is from firms one would think are competitors for VeloCloud. For example, Cisco is also in the communications industry providing firms with solutions based on hardware. VeloCloud, on the other hand, is simply improving on the existing networks on the SD WAN framework.
It has been stated by industry experts that this is because the firms have seen the value of using SD WAN since it allows for doing much more than simply routing traffic on communications. Also, SD WAN has the advantage of giving the customers outright control over their communications as they only need a single router managed from one location rather than many routers as other models require. Also, customers can use SD WAN without the need to replace their hardware and other aspects. These advantages have been too impressive for even the industry giants to resist the allure of the SD WAN framework.
Even more impressive is the fact that VeloCloud has made at least 50,000 installations and serves more 600 customers. So far, it has signed many big names among them NetOne, MetTel, Vonage, EarthLink, Windstream, Mitel, Sprint, TelePacific and AT&T. the run from being a startup to a large firm with big deals has been faster than anyone ever expected. The vison of the frim is to make communication even more convenient than it has already done.
Its biggest advantage is that it does not require the customer to change anything about their hardware. In this way, customers are able to save on the installation and deployment costs while evidently upgrading to a new communication model that is more reliable. The new funding is a big vote of confidence from respectable companies in the model employed by VeloCloud. With time, other firms will come on board as expected.