Mirantis raises $100 million funding from Intel Capital

By | August 24, 2015

+Mirantis, a OpenStack firm has raised a new $100 million funding in a round led by Intel Capital along with Goldman Sachs, August Capital, Insight Venture Partners, Ericsson, Sapphire Ventures and WestSummit Capital. The secured funds are in the combination of equity and spending.


Started in 2010, California-based Mirantis began its venture as systems integrator that brought the good OpenStack modules from many vendors to create cloud deployments for its clients. Few months ago, the company launched its own version of Open Stack competing with its previous partners Red Hat. The company which includes Comcast, Huawei, Getty Images as its clients for OpenStack, plans to go public next year.

Apart from funds, Intel will join hands with Mirantis to work together on fine-tuning enterprise features in OpenStack which is a set of technologies for building private or public clouds. “The deal here is that we are partnering with Intel to put a lot more dollars into making OpenStack enterprise-ready sooner,” said Mirantis co-founder and chairman Alex Freedland.

“On the whole, this collaboration that’s happening and Intel’s dollars, there is nothing proprietary in it. All of that is flowing directly into open source; there’s no IP that goes to Intel. All this is community-driven, so everyone will be able to take advantage of it,” added Freedland.

The software OpenStack, which competes with products from Microsoft and VMWare Inc ┬áhas been developing in a slower phase since its launch by National Aeronautics and Space Administration and Rackspace Hosting Inc., that provides cloud computing services. The ‘pure version’ of OpenStack is what Mirantis considers as competitive advantage that helps the company in competing with the bigger players in the market like IBM, Cisco, HP and Oracle who are selling OpenStack.

Till date, OpenStack concentrates only on the smaller projects. With the new funds and resources, the company plans to reach the place where it could be used in the large enterprises too. With the latest funds, the company’s total funds raise to more than $220 million.