Scale Computing CEO Jeff Ready declared two and a half years ago that IT infrastructure was changing for good and companies that don’t start moving their assets into hyperconvergence will be left behind and at greater risk.
Of course, such a prediction might have been seen as self-serving at the time, since Ready’s company and core tech talent in Indianapolis are the team that invented hyperconvergence back in 2011, and they have 27 patents to back up that claim. Hyperconvergence is a software-centric approach to IT infrastructure that integrates computing, storage and virtualization into a single stack using appliance-like nodes. It’s more agile and scalable, data is better protected and there are significant cost savings to hyperconvergence.
Much as Ready predicted, the $1 billion+ hyperconvergence market grew to $3.8 billion this year — accounting for 20 percent of business-critical applications infrastructure — and Gartner predicts it will top $6 billion by 2020. According to CB Insights, Scale Computing is the most well-funded tech startup in Indiana. And last week, the company announced it had raised $34.8 million in strategic Series F funding to extend its global reach as a leader in hyperconvergence and edge computing.
The next generation of the technology that Scale Computing pioneered, edge computing allows for smaller devices to process data on-site without the need for hefty support resources. This technology creates an architecture that can be deployed in all kinds of devices, such as ones used in manufacturing, medical and IoT applications.
Our content team caught up with Tim Harvey, CFO of Scale Computing. We asked him about the impact of this capital infusion on the Indianapolis operations and the talent they’ll need for the company’s expansion.
Because of the way their technology work is structured — with little need for hardware investments — Tim says the company will focus much of their raised capital in the people part of the business. “The first investments that we will be making are going to go on the go-to-market side where we’re expanding our reach in the marketplace. Our customer support will also be ramped up, that’s an area that we’ve focused on and get very high marks for, and that’s all handled out of Indianapolis.”
The company will also be looking to expand their leadership on the technology side of the business, as well as their Indy-based quality assurance staff who rigorously test the company’s software products.
While the company has launched operations in various areas of the county, Scale Computing is headquartered in Indy. Tim says that the city has been a great home for the company and conducive to their growth plans. “We moved downtown about a year and a half ago, and that’s been a big plus for us in terms of recruiting, retention and visibility as far as going after new resources.” The city’s cost of living and cost of resources have also played crucial roles for the company, according to Tim.
In particular, he cites the company’s space in the Union 525 and how that’s helped enable the kind of rapid growth Scale Computing has experienced. “The Union 525 has phenomenal products. We’ve almost doubled our space there just about two weeks ago.”
Following the fundraising round’s close, Tim says Scale Computing will plan on doubling their current staff capacity within 12-18 months.