By Max A. Cherney
SAN FRANCISCO (Reuters) -Cloud server builder Oxide Computer Company on Wednesday said it has raised $100 million in financing to help the company expand its manufacturing capabilities and get new products out the door faster.
Oxide makes server systems and the software which supports them that are designed to allow businesses to build cloud computing within their own company walls, instead of renting access to cloud servers from the likes of Amazon’s AWS, Google or Microsoft.
The company’s competitors include server systems made by Dell and HPE.
Oxide designs its server racks from the ground up, and has made significant investments in developing the software necessary to run in-house cloud computing. The idea is to give customers a complete cloud server system with no additional software licenses needed, according to chief executive Steve Tuck.
“We’re huge believers in cloud computing. We just believe that you should have it everywhere, not just in a rental only construct from a handful of service providers,” Tuck said in an interview with Reuters.
The software component of the company’s server system is crucial, Tuck said, because to solve problems with large businesses running server systems themselves requires both components, especially in areas such as security.
Beyond building additional software features and components, Oxide plans to use the cash to expand its manufacturing, logistics and supply operations.
The company’s customers in recent months have begun asking for dozens or hundreds of the company’s systems at once, according to Tuck, and Oxide needs to expand its ability to fulfill such orders.
Thomas Tull’s U.S. Innovative Technology Fund led the funding round. Oxide said that all prior investors participated in the series B funding round including Counterpart Ventures, Eclipse, Intel Capital, Rally Ventures and Riot Ventures.
Oxide previously raised $44 million in a series A funding round and nearly $190 million in total after Wednesday’s announcement.
(Reporting by Max A. Cherney in San Francisco; Editing by Kim Coghill)
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