The move follows HyTrust’s $18.5M Series C financing round in August and comes as enterprises increasingly deploy private cloud services. HyTrust said that it had quadrupled its sales over the past year. It now has 90 customers including 10 of the Fortune 100, HyTrust President & co-founder Eric Chiu told security current.
“Our business has accelerated both in terms of new customers as well as larger deals — we are regularly closing 6-figure and 7-figure deals,” Chiu said.
HyTrust said the acquisition of HighCloud would strengthen its offering by adding encryption and key management across all cloud environments, including private, public and hybrid.
“By bringing HighCloud Security’s market-leading technologies into the HyTrust family of solutions, we can take to market the strongest protection for virtualized cloud infrastructure available anywhere,” HyTrust CEO John DeSantis said in a statement.
Chiu told securitycurrent: “Today, there is not a significant overlap of customers, but there is a lot of joint prospects; in addition, HyTrust’s customers have overwhelmingly shown an interest in automated encryption and key management as an add-on to HyTrust Appliance.
“Also both companies have strong positioning in healthcare, government, and financial services market segments. What makes the acquisition even more interesting is that HighCloud is building a strong presence with the Cloud Service Provider market, and with companies who are moving to secure data in a public cloud infrastructure, while HyTrust has a dominating presence for organizations looking to lock down administrative control in virtualized/private cloud environments. Going forward, this interesection will result in a greatly increased market opportunity.”
Nearly half of large enterprises will have hybrid cloud deployments by the end of 2017, according to Gartner. In a statement issued last month, Gartner said private cloud computing has moved in the past three years from “an aspiration to a tentative reality for nearly half of large enterprises.” It noted that hybrid cloud computing is at the same place today that private cloud computing was three years ago.
HyTrust said the companies’ products work together currently and moves were underway to integrate the solutions to “bind administrative controls with data security in cloud environments.”
“We have already begun the process of discussing how to combine both technologies and provide an integrated solution when appropriate to our current and future customers. As part of that process, we will be reaching out to both companies’ customers to understand their requirements on private, public and hybrid cloud solutions so we deliver the best solution in the marketplace,” Chiu, said.
He said current pricing would remain in place though there may be some changes to pricing in the future as the products were more deeply integrated.
HighCloud’s 10 employees will join HyTrust’s 50 employees. Both companies are Califorinia based.