Cloudyn Raises $11M to Expand Private Cloud Monitoring Chops

For every dollar large enterprises spend on public cloud services, they will spend $11 on private cloud, Cloudyn CEO Sharon Wagner, said.

This is why expanding private cloud monitoring capabilities is the primary R&D focus for the Tel Aviv-area-based cloud monitoring startup that this morning announced an $11 million Series B funding round led by Israeli VC Carmel Ventures. Cloudyn’s focus is helping companies manage capacity and cost of their cloud infrastructure.

Wagner believes the size of the private cloud market is hundreds of billions of dollars. Cloudyn works with large enterprises in aviation, ecommerce, travel, and other verticals. These companies run from 10,000 to 30,000 VM instances concurrently, and “they mostly use private cloud,” he said.

The company’s platform is monitoring a massive amount of public and private cloud instances, and only about 30 percent of them are running in the major public clouds by Amazon, Microsoft, or Google, according to Wagner.

In private cloud environments, Cloudyn wants to manage VMware or Hyper-V VMs but has no plans to extend further down into bare-metal server management, Wagner said. He also expects Cloudyn to support microservices capabilities enabled by application containers on top of VMs.

In addition to R&D, the Cloudyn plans to use the new capital for marketing and to expand its North American presence. “We don’t have boots on the ground yet in North America,” the CEO said.

The plan is to launch an office on the East Coast first, followed by one on the West Coast.

Carmel Ventures, the latest funding round’s lead arranger, is an $800 million fund. It is a member of the Viola Group, a technology-focused private equity group with $2 billion under management.

As part of the funding deal, Carmel general partner Ronen Nir is joining Cloudyn’s board of directors.

Cloudyn raised $4 million in Series A funding round last year.