Open source vendors grab VC funding

Non-proprietary management software vendors are attracting investment

Two start-ups in the open source management software field have received millions of dollars’ worth of venture capital funding.

Hyperic and OpTier have brought in more than US$21 million (NZ$27 million) combined, which will be spent on upgrading their product suites, expanding business operations and fuelling sales and marketing efforts.

Hyperic recently announced it has secured US$6.1 million in its second round of venture capital funding, which was led by Benchmark Capital with Accel Partners, the same two investors that put up about US$3.8 million for the open source management software maker in May 2006.

Since its inception in March 2004, Hyperic has increased its headcount from its five original founders to 25 employees and changed its business model to make its once commercial Hyperic HQ software platform available under open source licences. Hyperic HQ, which competes with other open source products from GroundWork and Zenoss, includes server and distributed agent software and delivers reports on monitored devices and systems via a web-based interface. Hyperic’s founders say the additional funding will help the company continue to deliver software via the open source model.

“The market has been extremely receptive to our approach, and we’re excited to continue to expand the adoption of Hyperic to help IT gain control over [its] datacentres,” said Hyperic CEO Javier Soltero in a company press release. The company also reports that in the past year, it has increased its customer portfolio by 100% and that community-based deployment of the software have grown by more than 625%.

Separately, transaction management software maker OpTier, which relies upon automation to quickly detect application and business service performance problems, has reported that it has brought in another US$15 million in funding. New investor Gemini Israel funds joined existing investors Pitango Venture Capital, Carmel Ventures and Lightspeed Venture Partners for its third round of funding. The company had garnered more than US$25 million in its two previous rounds of US$16 million and about US$9.5 million.

OpTier’s flagship product, CoreFirst, requires IT managers to install a central data repository on a dedicated server and to distribute agents on managed web, database and application servers. IT managers must set the policies they want the software to use via a web-based interface, which also serves as a management interface and reporting tool. Once deployed, CoreFirst discovers how applications traverse the network and use the managed devices, and the agents monitor the transaction workloads on the servers.

According to Forrester Research senior analyst Evelyn Hubbert, CoreFirst’s “core ability lies with mapping business services, prioritising critical business processes supporting the services, analysing the performance of the underlying infrastructure and taking corrective actions.”

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Tags open sourcemanagementmangement software

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