Hybrid Cloud Up Time (HYCU), a self-styled “backup-as-a-service” company for customers managing hybrid and multi-cloud environments, today announced that it has raised $53 million in a Series B “Majority Equity” round. ” led by Acrew Capital with participation from Bain Capital Ventures, Atlassian Ventures and Cisco Investments. In an email interview with TechCrunch, CEO Simon Taylor said proceeds will go towards expanding HYCU’s 300-person team with a particular focus on customer success and partnerships, as well as funding new product development. and services, including a software-as-a-service product.
HYCU was spun off from Comtrade Software, an IT solutions company based in Belgrade, Serbia, with offices in Dublin, Amsterdam and Ljubljana. Comtrade — having sold the intellectual property of the data monitoring software it created to Citrix and Microsoft — realized that it could develop and sell data protection products through its own channels. The company decided to spin off HYCU, retaining a majority stake and focusing on integration and outsourcing.
In 2018, Taylor was named CEO of HYCU (pronounced “haiku”), which is based in Boston – where Comtrade Software has a fourth outpost.
“HYCU is… focused on data resiliency,” Taylor said. “The emerging threat of data explosion is too important to risk. Additionally, the emergence of hybrid and multi-cloud, where companies are moving more workloads and applications from on-premises to the public cloud, is accelerating at an unprecedented pace. Finally, the number of data silos in enterprises is also increasing. All of these are reasons why our current and new investors are working with HYCU to address these challenges.”
HYCU offers software designed to protect data in hybrid and multi-cloud environments. While “multi-cloud” and “hybrid cloud” refer to deployments with more than one cloud, they differ in the types of infrastructure involved. A hybrid cloud combines two or more different types of clouds (e.g. an on-premises data center and a public cloud like Amazon Web Services), while multiple clouds combine different clouds of the same type (e.g. Amazon Web Services and Google Cloud Platform) .
Specifically, HYCU sells products — most of them self-service — for cloud migration, security credential management, disaster recovery, and backup and recovery. Taylor sees the company’s offerings as competitive with legacy data protection providers with mainframe roots, application-based data protection and management companies, and cloud-native “backup-and-recovery-as-a-service” providers.
“HYCU has experienced much of its growth during the pandemic. Much of this was driven by the need to simplify the ransomware recovery experience,” Taylor said. “The pandemic has also seen the fastest increase in the use of multi-cloud systems. Many data protection solutions were developed before public clouds existed, and people began to realize the responsibility of protecting cloud data.”
There is certainly no shortage of competition in the data backup and recovery industry. In our coverage of HYCU Series A, my colleague, Ingrid Lunden, noted three major rivals: Rubrik, Veeam, Veritas, and CommVault. Veeam was acquired by Insight in 2020 for $5 billion. In early 2019, Rubrik was valued at $3.3 billion.
In 2019, IDC estimated that the data protection and replication software market was worth $9.4 billion. It’s almost certainly grown since then. More than 80% of companies responding to Flexera’s latest State of the Cloud survey reported having a hybrid or multi-cloud cloud strategy.
Gartner predicted in a 2020 report that worldwide spending on information security and technology and risk management services would reach $150.4 billion in 2021, driven in part by high-profile ransomware attacks. At the same time, the analytics firm projected, spending on public cloud services would rise to $304.9 billion — up from $257.5 billion in 2020.
HYCU claims to be in a strong position to expand, with a customer base totaling more than 3,100 organizations, including US state and local government agencies, the US Department of Defense and “multiple” branches of the US military. In anticipation of courting future public sector customers, perhaps, HYCU recently announced support for AWS GovCloud, Amazon’s cloud regions designed to host sensitive data and regulated workloads.
“Wherever there is a need for cost-effective multi-cloud data protection as a service, we meet those needs,” said Taylor. “HYCU is positioned to continue to thrive. We were approached to start a Series B and were able to do so at a time when many tech companies were challenged to raise money. Protecting data is an ever-present need, especially as more data is created.”
To date, HYCU has raised $140 million.