SnapLogic raises $37.5m in venture capital for cloud integration innovation

Dollar SignsOne of the first cloud computing start ups has re-launched with a completely new offering, after industry evolution jinxed its first ground breaking invention.

SnapLogic has announced the receipt of $37.5 million in venture funding for a second major launch. The money was released from a Series E round of funding from backers including Microsoft and Silver Lake Waterman. The new incarnation of SnapLogic will concentrate on making technology that simplifies the process of shifting data between major platforms. It creates software that acts as a control plane which runs in the cloud and another set of software which acts as a data plane which can run anywhere.

This, according to SnapLogic, makes it easier for customers to shift data from, say, Salesforce’s customer relationship management apps into Workday. Another application would be in the emerging Internet of Things sector, where SnapLogic software makes it easier for data gathered from industrial sensors to be flowed into Hadoop data lakes. SnapLogic can be accessed on the cloud via a browser and can support hundreds of simultaneous users at a site.

SnapLogic is one of the few start ups to survive having the rug pulled from it by a major shift in demand, according to CEO Gaurav Dhillon, who launched the company on its search for capital. When it received its first round of investment, led by venture capitalist Andreessen Horowitz in 2009, it offered customers “snaps” to connect cloud applications with on-premise applications, allowing them to shift data between the two. However, a combination of the increasing popularity of hybrid cloud alternatives, and SnapLogic’s proprietary nature, gradually undermined the popularity of this solution.

SnapLogic didn’t work in “pure cloud fashion,” Dhillon told the The Wall Street Journal, since every customer needed to create its own SnapLogic software, running on its own premises, to connect to its cloud apps.

Despite being abandoned by some of the original backers, SnapDragon has made a transition to create a new set of cloud system integration problems. Other contributors to the new round of funding include Andreessen Horowitz, Ignition Partners and Triangle Peak Partners. SnapLogic has now raised nearly $90 million in five rounds of funding.