Startup Decouples Storage from Compute for Hybrid Cloud

Velostrata, an early-stage hybrid cloud startup, has successfully raised $14 million in Series A funding. This significant investment round was spearheaded by Norwest Venture Partners and Greylock IL Partners. The company has developed a sophisticated hybrid cloud solution that fundamentally changes how storage and compute resources interact.

Their technology decouples storage from compute, enabling virtual machines (VMs) to run in the cloud while the storage remains on-premises. This allows data to stay closer to demand, with specific workloads shifted to the cloud during peak datacenter load. Velostrata's approach allows VMs to be streamed to the cloud rapidly, a process that could previously take weeks for large workloads.

The solution integrates with VMware vCenter, offering a 'run in cloud' option for administrators. It utilizes advanced algorithms and caching to minimize data transfer. Currently supporting Amazon Web Services, Velostrata plans to add Microsoft Azure compatibility in the future. The founding team includes serial entrepreneurs with previous successful exits, including Actona and Wanova.

With 25 employees, primarily in its Israel engineering center, Velostrata also maintains a U.S. business office in San Jose. The company is currently in Beta with a dozen customers and anticipates a general product availability in the coming months. The new funding will be used to expand its U.S. operations, focusing on business development, sales, and channel partnerships.