Cloud Storage Startup SageCloud Secures $10M in Funding

Boston-based cloud storage company SageCloud has secured a $10 million Series B funding, which will be used to speed up deployment of the company’s products and expand operations. The funding round is being led by Braemar Energy Ventures with participation from existing investor Matrix Partners.

The market for digital data storage is forecast to grow 60 percent annually in the coming decade, which is being driven by the rapid growth in archival and backup storage needs and the increasing importance of big data analytics. Industry analysts estimate that as much as 80 percent of that data growth qualifies as so-called ‘Cold Data’ – data that is written once and infrequently accessed.

In the recent report, “Cold Storage is Hot Again – Finding the Frost Point,” IDC (News - Alert) identifies power management as a critical data center need and forecasts that the market for solutions to address energy-efficient data storage will exceed $25 billion by 2016.

SageCloud’s storage systems are specifically engineered to address this escalating problem by lowering the cost of storage while offering reliability and energy efficiency, according to SageCloud Founder and CEO Jeff Flowers.

“SageCloud has developed powerful system software which leverages open-standards enclosures and economical commodity drives to optimize energy efficiency, drive sustainability and long-term data preservation for customers’ data centers,” Flowers said in a statement. “In this way, we are revolutionizing the economics of data storage.”

Flowers said he identified the emerging need for next-gen cold storage solutions as a result of his experience managing over hundreds of petabytes of storage at Carbonite, where he served as co-founder and CTO.

SageCloud had previously disclosed raising $3.2 million last August, according to the Boston Business Journal. In addition to the new financing, Dr. Jiong Ma, a partner at Braemar, will join the SageCloud board of directors.