Along with the funding and new technology, Xplenty says they will continue to support the open source Cascade project community
Tel Aviv-based data integration platform provider Xplenty announced today $4 million in venture funding and news that they had bought up Driven, the US Big Data application performance management and monitoring solution company for an undisclosed sum.
Having previously received funding from Magma and Waardi Capital for their Series A, US-based VCs Bain Capital, True Ventures, and Rembrandt Venture Partners have joined in to provide the company with money to grow their business, with Xplenty’s CEO Yaniv Mor telling Geektime that they intend to utilize the funds to expand their sales and marketing efforts out of their San Francisco office.
With this new venture capital under their belt, Xplenty reaches over $7 million in total funding, including their small Seed and $3 million Series A.
Xplenty was co-founded in 2012 by Mor and CTO Saggi Neumann. Their service works with businesses ranging from SMEs to enterprise, helping them to ease the process of preparing raw data for analysis.
“Companies are dealing with a lot more data than they used to,” says Mor, adding that the issue is more than just the amount of data their clients have to prepare for processing, whether it be on premises or in a private or public cloud.
“It’s the variety of formats, sources and location of the sources,” he says, which can include services like Salesforce, Facebook or Google Ads, or other channels that feed in operational data. Further muddying the waters, these companies will also add in transactional data to measure important KPIs and determine ROI. Companies will then feed this data into analytics data stores, like Amazon Redshift and Google’s BigQuery for analysis.
While many businesses will try to build tools in house, many will opt to go with services like Xplenty so that they can focus in on the work of analytics, and not waste time on just preparing the data.
“What we see the most is that people who are in charge of these kinds of projects start with trying to implement an inhouse solution, writing their own code, and what they find out pretty quickly is that these solutions don’t provide them with the scalability and flexibility that they need,” says Mor, adding that, “That’s when they seek services such as ours that address those issues. “Our data integration service allows those data professionals to design, implement and execute those data pipelines in a fraction of the time and cost. It enables them to focus on what matters, which is getting the insights from the analytics.”
The acquisition of Driven and Cascade
In addition to the new funding, Xplenty’s purchase of Driven marks an important milestone for the company as it is their first acquisition.
Driven, based in San Francisco, was founded by Chris Wensel in 2008. Mor describes Driven’s product to Geektime, saying that, “In layman’s terms, it is an app that sits on top of Hadoop technology, optimizing and managing that infrastructure. The synergy is that Xplenty’s processing engine is comprised of a lot of Hadoop infrastructure, so the Driven technology will help us to better utilize our own internal infrastructure.”
While Xplenty has not released the amount paid for Driven, they have noted that this was a technology acquisition, and that while Wensel will continue to consult with them, there was “a joint decision that the Driven team will pursue opportunities elsewhere.”
Along with the new advantages that they picked up in buying Driven, Mor was pleased to point out that the deal included open source Big Data project Cascade coming under their auspices as well, noting that, “With the acquisition, we are planning to continue to support the project and the community that is behind it.”
For those who are unfamiliar, Cascade is a platform for creating and running complex Big Data workflows that is used by thousands of businesses globally.
Easing the flow of business analytics
In the past, providers like Microsoft, SAP and Oracle dominated the data integration space. However with the move to the cloud, a number of new actors like Stitch Data which works primarily with replication and SnapLogic, who alongside replication also provides integration as well, making them the closest competitor to Xplenty.
Xplenty tells Geektime that they see their advantage within this space in their ability to be very scalable, as well as their easy onboarding for customers as a SaaS product.
Mor makes the point that they are “data plumbers”, making the process smoother, and do not do the analytics themselves. This is a point that makes perfect sense. While big players like Amazon and Google have the infrastructure to handle the analytics portion of this business, smaller companies may find it advisable to look at other parts of this process for gaps that can be filled with innovation.
The Xplenty team appears to have identified a real need in the market, and their growth of customers in the US and across the globe over the past few years is representative of the right market fit.
As data continues to remain king, services like Xplenty that allow companies to utilize it more efficiently will likely become increasingly in demand.