Verizon Ventures, a division of Verizon Communications, has made an $11.2 million Series C investment in CloudBees, a platform-as-a-service startup.
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Series C is the third round of investing in which a company has proven success in the market and holds potential for further growth.
Founded in 2010, CloudBees provides a continuous-delivery PaaS that enables developers to build and integrate Web and mobile applications with other services. It allows enterprises to build, run and manage Java applications in the cloud.
Verizon makes $11.2 million Stage C investment in CloudBees.
Continuous delivery allows companies to push out bug fixes and upgrades to customers with low risk and little overhead. It is “radically reshaping the way enterprises deliver value to the business by accelerating the way applications are built and deployed,” Sacha Labourey, CloudBees founder and CEO, wrote in a blog post.
Announced on March 5, the investment in CloudBees is part of Verizon’s strategy to invest in cloud computing. The telecommunications company introduced Verizon Cloud in October, and announced Feb. 19 it would offer CloudBees as part of this platform. Verizon Cloud is now in public beta.
As far as Verizon’s 2014 priorities, “The key ones are security; obviously our cloud with Terremark; our machine-to-machine through Hughes Telematics; and we have invested quite a bit in video through our Verizon Digital Media Service and recently our purchase of OnCue from Intel,” CEO Lowell McAdam said at the Morgan Stanley Technology, Media & Telecom Conference on March 4 in San Francisco. “So bringing those sorts of platforms to life.”
Matrix Partners, LightSpeed Venture Partners and Blue Cloud Ventures are also investing in CloudBees.
PaaS can help accelerate a company’s move to the cloud, according to Dan Keoppel, executive director of Verizon Ventures and an observer to CloudBees' board.
“Enterprise cloud application development and delivery is an innovative space that’s growing quickly,” Keoppel said in a statement. “As enterprises rush to adopt cloud services, PaaS speeds that adoption.”
CloudBees plans to develop technologies such as PaaS that can improve its platform and strengthen its ability to go to market, according to Labourey.
“PaaS and continuous delivery are transforming the way enterprises create business applications and deliver value to the business by accelerating the way applications are built and deployed,” Labourey said in a statement.
Research firm Gartner placed CloudBees in the “Visionaries” quadrant of its Jan. 7 “Magic Quandrant for Enterprise Application Platforms as a Service (aPaas)” report. The company now has 50 employees and has raised $25.7 million since its founding in 2010.
With the funds from Verizon, CloudBees plans to introduce new capabilities, fund sales expansion and extend the market for the CloudBees brand.