January 24th, 2013 by Erik Rudin, VP Business Development
Yesterday morning Portland-based IT automation software startup Puppet Labs Inc. stated it had received $30 million in funding from VMware Inc., the IT industry’s juggernaut in virtualization software.
This was VMware’s second investment in Puppet since its prior November 2011 Series C round. For VMware, this was a strategic investment to ensure their existing relationship’s success but perhaps there are other reasons why the Palo Alto based company made this investment.
Prior to this latest investment, Puppet Labs and VMware built a strategic partnership to deliver IT management solutions for enterprises looking to maximize the agility and productivity benefits of virtualization and cloud computing. Puppet’s technology helps support the concept of a ‘software defined datacenter’; allowing customers to ship products faster, reduce the amount of human interfaces, and mitigate the risk of change within the datacenter. Puppet Enterprise, the commercial offering of Puppet, already leverages the vSphere API for automated provisioning of Virtual Machines and applications. They also worked together on integration with VMware’s vFabric app director to leverage application configuration modules via the Puppet Forge marketplace.
For Puppet Labs, a bigger/stronger relationship with VMware ensures a brighter future with extending the company vision to build up existing products and speed up market adoption. Puppet can also attack a larger overlapping customer base as virtualization and configuration management technology converge into widely adopted solutions. Since the VMware integration is only possible with Puppet Enterprise, Puppet can push their commercial offering to tens of thousands of open source customers thus driving additional revenue.
For VMware, the investment will bolster their existing Puppet partnership and integration which will benefit VMware’s install base and promote VMware’s Connect Technology. A stronger integration with Puppet would allow VMware to also sell its leading virtualization products into smaller markets including SMB and cloud start-ups building out their own cloud stack. More importantly, this is a move to bolster VMware’s cloud solution in an ever crowded market with a solid configuration and orchestration technology like Puppet. Even after yesterday’s investment, Puppet founder Luke Kanies has also stated their interest to continue working with OpenStack, a cloud stack competitor to VMware.
For ScienceLogic, we continue to invest in technology partnerships with industry leaders like VMware and Puppet Labs with our SmartIT vision for improving heterogeneous cloud operations. The more industry leaders partner and unify their respective integrations and API’s, the better it is for consumers and ISV’s.