Network World 9/5/12 –
While big-name players such as Amazon, Google, IBM, Verizon and VMware sit atop the burgeoning cloud computing market, an entire ecosystem of early stage startups are looking to stake their claim, too.
Startups rush to the cloud
And why not? As Ignition Partners’ Frank Artale sees it, enterprises are on the precipice of the next major shift in computing and venture capital firms are “very aggressive” in looking for companies that can help customers ease their transition to the cloud.
“Initially this move will create more complexity,” he says. “Companies that can enable the use of cloud, virtual networking and storage will gets lots of attention.”
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Our list of a dozen such cloud computing upstarts, hailing from locations as far apart as Silicon Valley and Israel, includes those leveraging mobile devices for worker productivity, integrating software-defined networking and provisioning and monitoring cloud-based services. These companies — many of which have been able to get up and running by taking advantage of cloud services themselves — have attracted some $161 million in funding (one snared a $60 million round by itself) and are hungry for more as they look to grow their businesses.
Focus: Optimization of Microsoft Office apps for mobile devices
Location: Palo Alto, Calif., with offices in Herzliya, Israel
Management: Former Cisco employees Milind Gadekar (CloudOn CEO) and Meir Morgenstern (CloudOn VP of engineering/operations)
Funding: $26 million from Foundation Capital, Embarcadero Ventures, Rembrandt Venture Partners and Translink Capital
Product availability: Free download available on Apple, Android platforms now
Why it’s worth watching: Ask Milind Gadekar, and he’ll tell you that the workforce of the future will rely even more heavily on mobile devices. But for many workers, the most popular applications they use at their jobs are not optimized to work on mobile devices. That’s where CloudOn comes in.
The folks at CloudOn are aiming to make that mobile workforce more productive with their free app that’s in public beta. The company specializes in optimizing Microsoft Office for use on phones and tablets across a range of mobile operating systems, including iOS and Android, all using a cloud-based service.
Cisco purchased Gadekar’s first startup, named P-Cube, which focused on network optimization for service providers, for $200 million in 2004. After heading up product marketing for the firm, Gadekar left the company three years ago to explore mobile optimization opportunities. That’s when he founded CloudOn with Meir Morgenstern, who led the technical side of P-Cube and now serves as VP of engineering for CloudOn. Within a year of founding CloudOn, Gadekar says the best thing that could have happened to the company did: Apple released its first iPad.
With the release of the tablet, employees started bringing their iPads to work, looking to get access to email and their applications. “This was the exact problem we were trying to solve,” Gadekar says. In January 2011, CloudOn launched a free version of its app, available in the Apple App Store. Within 12 hours it was the No. 1 app in the entire app marketplace, not just in the productivity category where the company placed it. “Since then, it’s been a complete whirlwind,” Gadekar says. CloudOn has launched in 80 countries and in 70 of those it became the top downloaded app within 24 hours of launch. The app is now available on Android devices and in just over seven months it’s been downloaded 1.8 million times. “People are clearly looking for ways to be more productive, to enhance their mobile experience and to have a way to be mobile-centric,” Gadekar says.
CloudOn powers its application using proprietary software developed for optimizing Microsoft Office for use on a gesture-controlled mobile device. On the back end, it leverages file sharing services DropBox, Google Drive and Box, while hosting the software as a service (SaaS)-based application in the Amazon Web Services cloud. The success has fueled the company’s further development. Having raised $26 million through two rounds of funding, the company is aiming to start monetizing the product early next year.
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