Clumio, a Santa Clara startup, is our disruptor of the week.
The company launched in 2017 as an enterprise backup service for SaaS technology. It’s led by Poojan Kumar, former CEO of Pernix Data. The company raised $51 million in funding in two rounds.
Backup as a Service
Having a reliable backup system is complicated, clunky, and never user-friendly. Clumio aims to change all of that. The company that came out of stealth on August 13th offers solutions completely move backups from physical setups to cloud-based options. There is definitely a need for more completely cloud-based solutions but getting large companies on board may be a challenge.
In an interview with TechCrunch, Kumar explains the vision of his company.
“Enterprise workloads are being ‘SaaS-ified’ because IT can no longer afford the time, complexity, and expense of building and managing heavy on-prem hardware and software solutions…We have leveraged the most secure and innovative cloud services available…we can meet customer requirements for backup, regardless of where the data is.”
The company uses a mixture of public and private cloud services to secure data from either onsite or AWS services. Clumio calms to be able to “eliminate hardware and software with 100% SaaS” in its promotional material.
Clumio’s began operations on April 30th. The company stated they’ve obtained several high-profile clients, though no names have been announced
The company raised its $11 million in its Series A in 2017. This August it raised $40 million in its Series B.
Sutter Hill Ventures led Series A and participated heavily in Series B. Sutter Hill Ventures is based in Palo Alto, and focuses on technology startups. They’ve been around since 1962, have had 78 exits, and are helmed by Dave Sweet (formerly of Pricewaterhouse Coopers).
Series B was raised with a combination of Sutter Hill, Index Ventures. Several individuals also joined: Mark Leslie, founder of Veritas Technologies, and John Thompson, chairman of the board at Microsoft.
There has been an influx in capital being raised in the San Jose area in Q3, with Clumio being only one of several companies to receive more than $15 million.
In an interview with Forbes, Kumar shares his vision for Clumio branching out into additional services in the future.
“Conceptually, you can think of Clumio as building a data fabric,” said Kumar. “Over time, we’ll be delivering more services on top of this data fabric. We picked backup as the first service because it’s a huge market,” he said. “Our goal is to get into data management via the backup service as we start managing more and more of our customers’ data.”
There is a massive opportunity in the market for backup services, especially one that promises completely off-site enterprise solutions. However, the ability to provide this service and make a profit remains unclear. We’ll be watching to see what high profile customers buy into Clumio’s service over the next few quarters.