Disaster recovery software developer Zerto Inc. has raised $15 million in its second financing round led by US Venture Partners, and joined by current investors Battery Ventures and Greylock Partners. The company raised $7 million in its first financing round.
Zerto has always given a sense of déjà-vu. It was founded by CEO Ziv Kedem and his brother, CTO Oded Kedem, previously worked for disaster recovery company Kashya, which was sold to EMC Corporation (NYSE: EMC) for $160 million in 2006. Zerto director Erez Ofer, a partner in Greylock, was also involved in the Kashya deal.
Zerto also commercially launched its Zerto Virtual Replication solution - what it calls "the industry’s first hypervisor-based replication solution for large enterprises." It explains, in a hypervisor-based solution, replication happens within the virtual infrastructure of the data center, instead of the physical storage arrays. The company's solutions are designed for VMware Inc. (NYSE: VMW) cloud computing environments.
Kashya's disaster recovery solution replicated data from one hardware system onto another, enabling enterprises to continue functioning in case of disaster. In contrast Zerto's solutions operates at the virtualization level.
Kedem said, "The IT market has changed since the acquisition of Kashya. Today, IT departments are based on much more on virtualization."
This distinction affects both the technology and business functionality. Zerto's solution also targets services providers and data centers, which provide data replication services to third parties from remote server farms. Kedem says that the company has begun sales and that it has 30 employees in Israel and the US.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2011
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