MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--WSO2, the lean enterprise middleware company, today announced that it has closed $6.5 million in growth financing. The funding round was led by Quest Software, Inc. and joined by existing investor Intel Capital. WSO2 will use the funds to expand its global operations; grow its Silicon Valley-based marketing, sales and support teams; and extend its platform-as-a-service (PaaS) offerings to support the rapid increase in global demand for WSO2’s open source middleware platforms.
In conjunction with the financing, WSO2 announced that it is moving to new office facilities in Palo Alto, CA this month to accommodate the growth of its Silicon Valley team.
The funding round comes on the heels of accelerating market traction for WSO2 and its innovative middleware platforms. These include the award-winning 100% open source WSO2 Carbon, the industry’s first fully componentized middleware platform, and WSO2 Stratos, the first 100% open source cloud platform for enterprise applications — available both as a cloud-enabled application platform (CEAP) and PaaS. Highlights over the past year include:
- In 2010, WSO2’s revenues grew 95% over 2009, and the rate of new customer acquisitions increased 175% in the same time period.
- More than 500 billion customer transactions per year now run through WSO2’s enterprise middleware — with one leading ecommerce site running up to 800 million messages per day through the WSO2 Enterprise Service Bus (WSO2 ESB).
- WSO2 has a renewal rate of more than 90% among WSO2 Carbon production support customers.
- The growing customer base and revenues have enabled WSO2 to expand the company to more than 120 employees, representing an increase of over 30% in the last year.
“The strong revenues, customer adoption, and scale of deployments worldwide are powerful validation of our vision to bring agility to enterprises through a next-generation lean middleware platform based on open software standards,” said Dr. Sanjiva Weerawarana, founder and CEO of WSO2. “With the investment by Quest Software and Intel Capital, two leaders in cultivating technology innovators, we can now strategically accelerate the expansion of our global operations to address this growing demand.”
With the investment, Tyler Jewell, Quest Software investment manager, joins the WSO2 board as a board observer. He notes, “More enterprises worldwide are turning to WSO2’s integrated, customizable high-performance middleware to achieve a level of agility that traditional middleware providers can’t match. We are excited to support WSO2 in building on this success and expanding its global market presence.”
Lisa Lambert, vice president and managing director, Software and Service Group, Intel Capital says, “With its Carbon and Stratos product lines, WSO2 is well positioned to take advantage of growth opportunities in the middleware market. This latest round of funding will help WSO2 to further expand its business and build a leadership position.”
About WSO2
WSO2 is the lean enterprise middleware company. It delivers the only complete open source enterprise SOA middleware stack purpose-built as an integrated platform to support today’s heterogeneous enterprise environments—internally and in the cloud. WSO2’s service and support team is led by technical experts who have proven success in deploying enterprise SOAs and contribute to the technology standards that enable them. For more information, visit http://wso2.com and the WSO2 OxygenTank developer portal at http://wso2.org, or check out WSO2 on Twitter, LinkedIn, Facebook, WSO2 Blog and FriendFeed.
About Quest Software, Inc.
Quest Software (Nasdaq: QSFT) simplifies and reduces the cost of managing IT for more than 100,000 customers worldwide. Quest Software’s innovative solutions make solving the toughest IT management problems easier, enabling customers to save time and money across physical, virtual and cloud environments. For more information about Quest solutions for application management, database management, Windows management, virtualization management, and IT management, go to www.quest.com.
About Intel Capital
Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing and cleantech. Since 1991, Intel Capital has invested more than US$9.8 billion in over 1,100 companies in 48 countries. In that timeframe, 189 portfolio companies have gone public on various exchanges around the world and 258 were acquired or participated in a merger. In 2010, Intel Capital invested US$327 million in 119 investments with approximately 44 percent of funds invested outside the United States and Canada. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
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