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03/26/2007

GroundWork Open Source Closes Over-Subscribed $12.5 Million Series C Financing Round

 

GroundWork Open Source, Inc., the leader in open source systems and network management software, recently announced that it has secured $12.5 million in its third round of venture capital financing. The Series C round includes new investors JAFCO Ventures, SAP Ventures, the corporate venture investing arm of SAP AG, and existing investors, Canaan Partners and Mayfield Fund. Investment proceeds will be used to extend GroundWork's worldwide adoption and phenomenal customer traction, grow the GroundWork Partner Network, and broaden the product portfolio.

“In less than three years, GroundWork has established an irrefutable leadership position in open source systems and network management, offering a viable and compelling open source alternative to proprietary IT monitoring solutions,” said Tom Mawhinney, General Partner at JAFCO Ventures, which led the round. “We invested because there is a tremendous untapped market opportunity in the mid-market for GroundWork's solution and their seasoned management team is ideally poised to capitalize on this opportunity.”

GroundWork unifies leading open source projects to deliver enterprise-class IT systems and network management solutions at a fraction of the cost of proprietary solutions, including HP OpenView. Offering the widest range of support for operating systems, applications, and networked devices, organizations can leverage the flexibility and low cost of open source tools to achieve enterprise-level availability, performance and operational efficiency at a fraction of the cost of traditional software.

“We see enormous synergies with GroundWork's technology and its ability to monitor installations of SAP applications, which are seamlessly integrated into a comprehensive system-wide monitoring solution,” said Jai Das, Partner at SAP Ventures. “For mid-market customers, GroundWork will help reduce total cost of ownership.”

GroundWork Monitor Professional, the company's flagship solution, has been deployed in more than 20 countries spanning key vertical markets including finance, technology, construction, education, government, manufacturing, utilities, healthcare, and pharma. In 2006, GroundWork had a 400% increase in subscription revenue while surpassing the 200 customer milestone.

“GroundWork's solutions are ready for mission-critical business environments,” said Ranga Rangachari, CEO of GroundWork. “In 2006, we successfully monetized our business and achieved escape velocity in the open source systems and network management space. In 2007, we see a growing and profitable business, taking share from proprietary products like HP OpenView as the mid-market better understands the value and maturity of our offering.”

San Francisco-based GroundWork Open Source, Inc. is the leader in the fast-growth market for open source systems and network management software. The company unifies leading open source projects into a complete software solution for monitoring and managing the performance and availability of the entire IT infrastructure at a fraction of the cost of traditional software. Thousands of systems administrators across hundreds of organizations worldwide have downloaded and deployed our products to monitor and manage the performance and availability of over one million systems and network devices. GroundWork customers represent a variety of industries, including education, financial services, government, manufacturing, and high technology. The company is privately held, with investments from Canaan Partners, Mayfield Fund, JAFCO Ventures and SAP Ventures.

For more information, please visit www.groundworkopensource.com