Big Switch Scores New Funding Round
Bare metal SDN trailblazer Big Switch plans next week to announce its fourth round of funding, Light Reading has learned. The company will invest the money in sales, marketing and global expansion, with an eye toward an IPO in two or three years, according to Silicon Valley sources.
Big Switch Networks , founded in 2010, has received three rounds of funding to date -- a seed, and Round A and B, for a total of $44.3 million, with the most recent round happening in 2012. Investors include Bill Meehan, Greylock Partners, Index Ventures, Intel Capital, Kosla Ventures, Mark Leslie, Morgenthaler Ventures and Redpoint Ventures.
Big Switch faced an uphill battle at first, explaining the value of bare metal SDN to a market of network operators wedded to proprietary equipment and software. However, the company has gained momentum recently with the emergence of New IP networks, winning seven-figure deals with mobile operators, telcos, financial services, high tech, the US government and higher education. Big Switch's core customer base is the Fortune 50–2000.
The company has achieved seven consecutive quarters of 40% quarter-over-quarter growth, with a run rate of more than 250% growth year over year.
Big Switch packages its products as self-contained racks of white box switches, which it calls pods, running SDN software. The Big Monitoring Fabric taps network traffic for analytics, particularly useful in watching for anomalous behavior that could indicate a security breach. The Big Cloud Fabric is a fully functional SDN network for deploying cloud networks, including OpenStack and big data applications.
Dell Technologies (Nasdaq: DELL) is a top channel partner for Big Switch, distributing the fabric for its switches, in conjunction with VMware Inc. (NYSE: VMW) NSX as part of a bid to compete with Cisco Systems Inc. (Nasdaq: CSCO) ACI. Dell plans to acquire EMC Corp. (NYSE: EMC), which in turn owns 80% of VMware. (See Dell-EMC-VMware Merger Could Push Comms to Kids' Table.)
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