Egnyte get a boost up from a competitor
By AdFeatures | Friday, August 31, 2012, 13:57
Storing large files online with the help of ‘cloud computing’ is something that more small, medium and large companies are doing, and a recent investment in a firm offering this service by the investment arm of search engine giant Google proves that the cloud is becoming more popular. Google Ventures has invested $16 million in cloud computing firm Egnyte in the hope that the money will help to boost their profile throughout the world as one of the leading providers of online file storage.
In exchange for this Series C funding, Google Ventures partner Karim Faris will sit on Egnyte’s board, offering advice on how the business can expand in order to compete with some of its rivals. Added to money invested by other firms including Polaris, the total amount of money Egnyte have received to spend on marketing their product to a worldwide audience totals around $32 million.
The money awarded is to help Egnyte with increasing awareness of its cloud storage and cloud hybrid services, and will help improve operations at its data centre in Amsterdam and fund a marketing office elsewhere in Europe, possibly in London or Brussels. In addition to that, it will help bring their marketing budget closer to that spent by other online file storage providers such as Box.
Although Box are the market leader in cloud storage, Egnyte CEO Vineet Jain believes that the race to become the biggest provider between the two companies, not to mention other services like the Apple iCloud “is on”, and recent investments will help to give them a fighting chance of becoming the top cloud computing company today. Although the cloud storage marketplace hasn’t taken off yet, increasing interest in this still-new form of file storage is likely to grow considerably over the next few years as companies look to alternatives to owning a server.