StrataCloud raises $2M to keep on rocking with its data center management software

Virtualized data centers that run lots of virtual machines for handling applications on every single server can save you a lot of money. But managing these virtual machines along with regular, non-virtualized servers might not be easy. StrataCloud, a startup that helps manage VMware-based data centers, has just picked up $2 million in seed money to better market its software to enterprises.

In addition to announcing its funding today, StrataCloud also named Brian Cohen as its chief executive. He joined the startup from Hewlett-Packard, where he held strategy and operations roles.

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“We track the data, collect the data ourselves, and we use our own compression algorithms that allow us to store more data efficiently,” said Cohen in an interview with VentureBeat. Based on historical data, StrataCloud can then predict what resources applications need in the future and better provide computing resources for them.

That puts it in line with a few other data center management startups that have taken on funding lately, including Platform9 and StackStorm.

But Cohen said StrataCloud’s direct competitors include virtualization giant VMware, which ships its vCenter operation management software. But he believes VMware’s vCenter management software might not be enough for customers with complex problems, who can be better served by StrataCloud. Its customers include Rackspace, E*trade, InterContinental Hotels Group, and branches of the federal government.

Cohen said many companies base their management work on averages. If the virtualized environment is performing at 10 percent of efficiency at 10 percent of time, while performing 100 percent of efficiency at 90 percent of time, the average for the whole time is still around 90 percent efficiency. It looks good as an average but really sucks at that 10 percent of time.

“The virtual environment changes dynamically, once every five minutes, ten minutes or an hour, so many things happen,” said Cohen. “StrataCloud takes a snapshot once every 20 seconds.”

Hallett Capital led the round, and BLH Venture Partners also participated.

StrataCloud will use the new funding to make initial investment in sales and marketing and a few key hires for the engineering team.

StrataCloud, based in Atlanta, started in April. Cohen said StrataCloud acquired the technology assets of Reflex Systems, which brought in tremendous advantages in engineering and products.

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The startup currently has fewer than 25 employees and is expanding its employee count rapidly. StrataCloud uses a direct sales business model and will have a cloud-based offering in the future, Cohen said.