Midokura Raises $17.3M In Series A Funding For Network Virtualization For IaaS

Today, Midokura announced the finalization of $17.3 million in Series A funding in a round led by Innovation Network Corporation of Japan with additional participation from NTT Group’s Venture Fund, DOCOMO Innovations Inc. and NEC Group’s Venture Fund, Innovative Ventures Fund Investment L.P. The funding is intended to expand Midokura’s product development teams and contribute to the refinement of its go-to-market strategy. Coincident with the news of Midokura’s Series A funding is the announcement that Dan Mihai Dumitriu, formerly CTO, replaces Tatsuya Kato as CEO. Co-founder Tatsuya Kato will assume the responsibility of Chairman of the Board. CEO Dan Mihai Dumitriu remarked on the significance of the capital raise and the company’s software defined networking technology as follows:

As enterprises and carriers embrace and build out IaaS clouds, an overlay-based network virtualization platform will soon be a must-have technology. The financial support of Innovation Network Corporation of Japan, and other key backers, validates our strategy as well as the work we’ve done over the past three years developing our industry leading product MidoNet. This funding will enable us to accelerate our product engineering, the establishment of partnerships, and the growth of our customer base. We look forward to delivering the most performant, scalable and fault tolerant network virtualization solution to the IaaS infrastructure market.

Here, Dumitriu neatly summarizes the concept behind Midokura’s Midonet platform, a distributed, software-defined virtual network solution targeted toward IaaS cloud-service providers as well as enterprises. Midokura plays in the space made famous by VMware acquisition Nicira, but is designed differently because of its decentralized, fully distributed architecture as elaborated by Brad Hedlund. The company is already a veteran contributor to the OpenStack community and is in the process of gearing up to announce further partnerships with other cloud platforms in the upcoming months according to Chief Strategy Officer Ben Cherian. Now that the company is flush with a significant infusion of cash, the industry should expect to hear more news about Midokura’s penetration into the U.S. market as its unique software defined networking platform increases its footprint in IaaS infrastructures and delivers simplified network infrastructures and protocols for data transmission in addition to high performance and high availability virtual networking solutions.


Midokura Enters U.S. Market For IaaS Virtualized Networking

Midokura today announced its official entry into the U.S. market with a network virtualization offering geared towards Infrastructure as a Service (IaaS) platforms. Midokura was founded in 2010 with the intent of building a public cloud in Japan. The company’s cofounders Tatsuya Kayo and Dan Mihai Dumitriu quickly recognized the challenge of building cost-effective, efficient networking infrastructures for cloud platforms and decided to focus on networking solutions for IaaS. Midokura’s virtualization platform, Midonet, decouples the cloud from network hardware by creating an abstraction layer that lies between the physical network and hosts. The resulting environment enables the following benefits:

•Simplified network infrastructure
•High availability
•High scalability
•Simplified and reduced network protocols for data transmission
•Network optimization
•Improved fault tolerance

Midonet delivers a “distributed, de-centralized, multi-layer software defined virtual network solution” that overlies an IP connected network and thrusts network intelligence to the network’s edge. Midonet is integrated with the Essex version of OpenStack and features a plugin for Quantum in addition to Nova network drivers. Midonet’s tight integration with OpenStack means that the product is ready for deployment in enterprise-grade OpenStack installations all over the world.

Jonathon Bryce, Executive Director of the OpenStack Foundation, remarked on Midokura’s contribution to OpenStack as follows:

Companies like Midokura are growing the OpenStack user base by advancing the technology and offering real deployment options. The team that built MidoNet has been active in the OpenStack community, and have been consistently contributing to the project. The ability to extend the OpenStack platform with pluggable networking technologies allows greater innovation and choice for our users.

Because Midokura has “been consistently contributing” to the OpenStack project, it stands well poised to cater to the needs to OpenStack deployments that have differentially drawn upon the OpenStack product and its different versions for their own customized installations. Midokura’s team includes engineers from Amazon, DreamHost, Fulcrum Microsystems, Google, NEC and NTT. The company’s core product, Midonet, will target both cloud service providers as well as enterprises.