More on ManagedStorage:
redherring.com
ASP
MANAGEDSTORAGE
managedstorage.com
Broomfield, CO
FUNDING: $50M
PRIOR FUNDING: $10M
ROUND: 2nd
CATEGORY: ASP
DESCRIPTION: Outsourced data storage.
LEAD INVESTOR: Providence Equity Partners (over $25M)
OTHERS: Great Hill Partners; First Union; J.P. Morgan; EMC Corp.
THE HERRING TAKE: CEO Bill Johnson's answer was nothing short of spectacular when queried about
competition. "The only competition we have," he says, "is time itself." He wasn't talking about the
magazine. It was a weird response because the outsourced data storage arena is indeed getting
crowded, with VCs opening their wallets at a furious pace. There are three facets to Managedstorage's
data storage approach: data protection, archiving, and what Mr. Johnson called "storage by the slice," a
reference to small customers with relatively small needs. Data security is of paramount concern to the
startup, for without it they'd die. Mr. Johnson acknowledged as much, and says Cisco and Brocade
supply him with all the encryption and firewall security his company needs. The reticent Mr.Johnson
derives his revenue by charging his 10 customers storage fees per gigabyte. Managedstorage currently
employees 250, and will be hiring more. Mr. Johnson pointedly refused to disclose his burn rate, what
kind of salary he was drawing, and even when he expected his startup to be profitable. Once this round
is exhausted, Mr. Johnson says, he'll begin looking for a 3rd tally "north of $50 million." Says Mr. Johnson,
who was eager to hang up the phone: "We have a lot of work to do." |
