Intel Heading $100 Million Investment in Mirantis
Intel Corp is increasing its support for free software, which is aimed at helping companies enjoy the kinds of benefits that are offered by cloud services from Microsoft Corp, Google Inc. or Amazon Inc. On Monday, the big chip maker will announce its lead role in an infusion into Mirantis Inc. worth $100 million. The subscription version of OpenStack, the open-source software, is sold by Mirantis. The venture-capital arm of Intel first made an investment in Mirantis in 2013 and now the company is making a contribution along with other investors for a $75 million funding round. Furthermore, Intel is also committed to provide additional funds for financing future technology development by Mirantis.
Similar to other open-source products, you can find free and commercial versions of OpenStack in an arrangement that allows customers to avoid being stuck with one vendor. Often referred to as a data-center operating system, there is a software dashboard offered by the program that can assist companies in managing collections of storage devices, server systems and networking equipment. The software is a direct competitor of products offered by VMware Inc. and Microsoft Corp. Since its introduction in 2010 by Rackspace Hosting Inc., which is a cloud computing services provider, and National Aeronautics and Space Administration, the program has been making slow progress.
While the new commitment by Intel may not be decisive, it could make the product more appealing to corporate customers. Based in Mountain View, California, Mirantis has some prominent clients, which include heavy names such as PayPal Holdings Inc., Ericsson AB, AT&T Inc., Gap Inc. and Samsung Electronics. Intel’s chips have been used for powering most servers and the company has been working with software makers for developing products that can aid in boosting sales of its own technology. In the previous month, the company pledged to invest in an initiative called Cloud for All.
The purpose is to assist data centers in emulating the efficiency of cloud services like Microsoft Azure and Amazon Web Services. Intel’s senior vice president, Diane Bryant has said that if existing shortcomings are tackled by software developers, a greater number of companies would be able to set-up cloud style operations. Intel is expecting Mirantis to minimize service outages for modifying OpenStack. The collaboration between Intel and the Silicon Valley startup is similar to a deal that was announced in the previous year between Intel and Cloudera.
Around $740 million was invested by Intel in Cloudera that supplied a program called Hadoop, which aids company in collecting and analyzing large quantities of data. Founded in 2000, Mirantis originally offered a variety of technology services and branched into cloud computing in 2011. The president and co-founder of the company said that its workforce has grown to 750 employees from 150. Apart from Intel, there are other investors participating in the latest funding round, which include Goldman Sachs Group Inc. and Ericsson. It was nearly a year earlier that Mirantis had raised $100 million in a funding round by Insight and August.