Cloud Computing: Cisco and NetApp Invest In Startup Datos IO
Why do Cisco and NetApp companies unite to invest millions in a staggering startup of data management called Datos IO? The answer lies precisely in Cloud Computing, but also in the race that both technology companies are running to catch up with customers who want a mix of cloud architecture and on-site architecture.
Datos IO is only 3 years old, and its data backup product is on the market only since last June. It has nevertheless already conquered major tech customers, such as Ayla Networks, Barracuda Networks, eBay and OpenTable, as well as more well-known non-tech companies such as Macy's, Payment ACI Worldwide and Home Depot (distribution), which presented its use of Datos at a recent Google Cloud event.
For Cisco and NetApp, Datos is at the heart of a transition to information technology based on cloud computing, a transition that is now vitally important to both companies. Almost 80% of Datos customers are also customers of one of these two tech queens, while 70% use Datos in the public cloud.
"The first phase of the cloud focused on small businesses starting with an all-cloud strategy," says Tarun Thakur, founder of Datos. "The second phase focuses on the company itself."
When many startups seek to help businesses move to a cloud environment, Datos believes that its system can help create backups in the cloud faster than the competition, while maintaining a more two-way information circuit Which Amazon Web Services offers offer, which tend to encourage the migration of all data to AWS (Amazon Web Services).
Cisco compared Datos with other data management companies on cloud computing and decided to support Datos, because of its ability to act as a suite of central data management via various databases, says director Michael Porat , The leader of the investment and data center at Cisco. Users of more recent databases such as MongoDB and Apache Cassandra did not get the same visibility on their data, he said. "I think Datos is putting a finger on something, and that is how our customers go to the hybrid cloud," says Porat. "It's disruptive."
Despite only 25 employees and two salespeople, Thakur believes that all Datos IO customers to date, with the exception of two, have been large companies, especially brick and mortar companies looking to make a transition to the cloud computing. The startup claims to double its customer base every quarter.
Cisco usually makes between 30 and 40 investments in startups during each fiscal year. This is the first investment of its kind for NetApp, which has been a more traditional storage company but is now moving more and more towards software. Both companies will take an observer position on their investments.
By investing in Datos, Cisco and NetApp recognize the rise of cloud computing services such as Amazon Web Services and Google Cloud. This while being aware that their client bases will keep some workloads and forms in their infrastructure for several years to come. "There are new silos," Thakur says.
If Datos can help Cisco and NetApp client databases navigate between these silos, perhaps a healthy business will ensue - while ensuring that its investors are not left behind.