Tech Leaders Launch CloudHealth, Raise $4.5M in Funding from .406 & Sigma Prime

Tuesday Mar 12, 2013 by Dennis Keohane - Contributor, VentureFizz

In the 1990’s, as companies in almost every business segment rapidly expanded their networking computing infrastructure, an entire new industry was created to manage the ever-expanding infrastructure. The first companies to take advantage of the new opportunities were created to build and deploy new networking and internet technologies; then, secondly, businesses were founded that focused on troubleshooting the myriad issues that were constantly arising within the new infrastructures. 

Eventually, local company Concord Communications came out with a product called NetworkHealth that offered something else, business level reporting and analysis for the new networks. The product allowed for greater oversight of networks and hard data that executives could use to incorporate into their overall business plans.

Dan Phillips was the COO for Concord during that era. Today, he and industry leaders Joe Kinsella, former VPE of both Sonian and Silverback Technologies, and Dave Eicher, formerly of Genarts as well as Silverback, are announcing the creation of a product that seeks to bring the same focus on business-level reporting to cloud computing.

CloudHealth Technologies, a company started by Kinsella, and later joined by Phillips and Eicher, is announcing a round of Series A funding and the deployment of their new innovative cloud management tool, CloudHealth.

The $4.5 million round was led by .406 Venture’s Larry Begley and Robert Divoli of Sigma Prime. CloudHealth plans to use the funds to scale its engineering, sales, and marketing groups.

Phillips described CloudHealth as “the first product that offers business performance management for the cloud.” He further explained that the product helps companies that are using the cloud, “to trend, analyze, model, and plan their entire cloud ecosystem and optimize the performance and cost of the cloud from a business perspective.” CloudHealth, like its distant predecessor NetworkHealth, produces business level reports for management, a service that Phillips says “no one else is doing in the cloud space.”

The company has seen immense growth over a short period of time that can be attributed to the founders’ past successes. With industry veterans Kinsella, Eicher, and Phillips, CloudHealth Technologies expanded from its founding and testing phase last spring to start the funding process in January to today’s announcement.

The $4.5 million Series A represents for Phillips a belief in CloudHealth’s future from .406 Ventures and Sigma Prime. As he said of the connection with Begley and Divoli, “We all have the same view that there hasn’t been this level of a disruptive market opportunity in the computer industry since the 90’s when all companies moved to the internet.”

At that time, Kinsella, Eicher, and Phillips were at the forefront of innovations that were poised to take advantage of networking computing. Today, they seem primed to do the same for cloud computing.

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Dennis Keohane is a teacher, journalist and contributor to VentureFizz.  You can follow Dennis on Twitter (@DBKeohane) by clicking here.

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