Nirvanix, the San Diego-based company that brought network attached storage to the cloud, has raised another $5m in funding from its original investors - Intel Capital, Mission Ventures, Valhalla Partners and Windward Ventures.
The latest funding round brings the total raised by the intriguingly named company to over $23m and underscores the belief among the VC community that cloud-based services targeting business customers will continue to blossom despite, or perhaps because of, the recession.
Jim Zierick, chief executive, says the dramatic increase in demand for cloud storage reflects the need of business users as they, “look for new ways to cost-effectively manage data growth as the economy stresses IT and storage management budgets.”
Nirvanix said it will use the funds to expand its enterprise storage service dubbed ‘CloudNAS’ worldwide. Since it set up shop 18 months ago, Nirvanix has signed up more than 500 business customers including “Fortune 50, media and entertainment and leading Web 2.0 companies,” and set up five storage delivery network nodes (aka server centers) in the US, Europe and Asia