DevOps players CloudBees and Puppet raked in more than $100 million in combined funding this week. Although $100 million seems like a lot of dough, it’s really just a drop in the bucket in a market that is expected to generate several billions in revenues this year.
CloudBees sourced its funding from a $37 million equity round led by Delta-v Capital and $25 million in growth financing from GoLub Capital’s Late Stage Lending business. Other participants in the funding included existing investors Matrix Partners, Lightspeed Ventures, and Verizon Ventures, and new participant Unusual Ventures.
The company plans to use the new funds to update its software platform, develop new partnerships, and look for acquisition targets.
“We have seen significant growth in our business over the last several years, but we now see an even bigger opportunity just in front of us as continuous software delivery becomes a strategic imperative for every business,” said CloudBees CFO Matt Parsons, in a statement.
CloudBees was founded in 2010, and had previously raised $49.2 million in funding. The company offers continuous delivery (CD) software services with a specific focus on the Jenkins open source automation server.
CloudBees previously reported a 60 percent year-over-year increase in revenues and 77 percent surge in subscription revenue for its last fiscal year ended Jan. 31. The company added 100 new employees in the first half of this year, and in February acquired cloud-based continuous integration (CI)/CD platform provider Codeship.
Portland, Oregon-based Puppet over the past year has expanded its reach with the opening of five new offices. Those new locations include Seattle; Sydney; Timisoara, Romania; Tokyo; and an Asia-Pacific regional headquarters in Singapore. That is also where investor EDBI is focused.
According to a recent SDxCentral survey as part of our 2017 Container and Cloud Orchestration report, 62 percent of survey participants said that DevOps tools are in use within their organizations. That was down slightly from the previous year’s 64 percent.
In that survey, Ansible was the DevOps tool of choice according to 37 percent of respondents, compared with just 21 percent in 2016. The survey also showed Puppet was used by 27 percent of respondents and Chef used by 25 percent of respondents.
Despite the year-over-year slowdown shown in the SDxCentral survey, a recent Grand View Research report noted that the broader DevOps market was worth nearly $2.8 billion in 2016. The firm predicts the market will grow at an 18.6 percent compound annual growth rate (CAGR) through 2025.