Hyperconverged infrastructure vendor Scale Computing raised $34.8 million in Series F funding. Lenovo led the round, and last week announced a partnership with Scale to develop edge infrastructure for global retailers, distributed enterprises, and small- and medium-sized businesses.
The Series F brings Scale’s total funding to about $104 million. The company won’t comment on its initial public offering plans.
Scale launched its HC3 hyperconverged platform in 2007 at VMware’s annual VMworld conference. More recently it’s expanded into edge computing. In addition to the Lenovo partnership, which combines Lenovo’s hardware with Scale’s HC3 software, Scale also recently teamed up with Schneider Electric’s APC on a turnkey HCI system for edge deployments called Micro Data Center in a Box.
Growth at the Edge
The company’s secret sauce is its HyperCore technology, which uses machine learning and automation to find and correct infrastructure problems in both hardware and software in real time. This capability is key to its edge products — and for running mission critical applications in these environments, said Scale Computing CEO Jeff Ready.
The latest funding round is significant, in part, because of Lenovo’s investment, Ready said. “It’s a great partnership and validation of what we are doing around edge computing and simplifying IT,” he said. “We also expect this to be the last round before reaching profitability.”
Scale’s revenue has more than doubled over the past two years, driven by edge growth, with sales in the retail sector specifically up 400 percent. Recently announced customer wins include Ahold Delhaize, a global supermarket retailer with nearly 7,000 stores; Genting Group, the third largest casino company in the world; Jerry’s Enterprises, a large North American food retailer; and Farm Bureau Insurance.
The company will use the latest investment to expand its international sales and marketing, broaden its channel partner program, and further develop its edge platform, said Dave Hallmen, chief revenue officer at Scale Computing.