Leading Cloud Security Provider CloudPassage Achieves $14 Million in New Financing

The cloud computing infrastructure differs from traditional hosting services because of scalability, and pay-as-you-go pricing. A start-up company might be very interested in getting the scalability, and in not paying for the time they're not using the service. Larger companies are attracted to the cloud for similar reasons. However all are concerned about issues with security. The cloud’s cost and complexity reduction bring with them a new set of information integration challenges.

As more information is moved into the cloud, organizations are facing a migration of their corporate information into disconnected silos. Without some kind of secure, robust integration solution, these organizations will lose the data fidelity and accuracy they currently take for granted.

Recently, CloudPassage, a cloud server security provider, has completed a $14 million series B financing round, bringing the company’s total funding to $21M. This new round of financing comes at an inflection point for CloudPassage. The company has experienced subscriber growth of over 70 percent during the first two months of 2012, compared with last year. In 2011, the company released Halo™, the industry's first and only security and compliance platform, purpose-built for elastic cloud environments. Forrester (News - Alert) Research predicts the cloud security market to grow to $1.5 billion by 2015 which bodes well for the company’s future prospects.

Carson Sweet, co-founder and CEO of CloudPassage, said, “With the cloud quickly gaining traction, we were the first to provide a security platform that allows companies to safely leverage this new computing model. We’ll be extending our leadership in the IaaS security space with innovations that will change how companies look at server security altogether. We’re excited to have the continued backing and expertise of top-tier investors; both Benchmark and Tenaya are well-known leaders who strengthen the company’s ability to refine and execute on our vision.”

Integrating enterprise applications with cloud-based services can be difficult. Organizations need to deal with identity, data reconciliation, protocol translation and verification across a public or shared network. While there are point solutions that can simplify integration; identity and access management infrastructure that can be extended to provide Single-Sign On (SSO) for the cloud; and application and data security solutions offered by technology vendors like CloudPassage. Headquartered in San Francisco, Calif., CloudPassage is backed by Benchmark Capital, Tenaya Capital and other leading investors.