Virtualization: Goldman Sachs Invests $70 Million In AppSense
No doubt, venture capital firms are interested cloud computing and virtualization companies. But Goldman Sachs’ $70 million investment in AppSense shows just how tempting the cloud market is right now. Goldman Sachs expects a huge return on investment, claiming that user virtualization will swell to a $2 billion industry over the next few years.
AppSense, which got new leadership in the form of Citrix veteran Richard Jackson at the tail end of 2010, says that they plan on using Goldman Sachs’ money to accelerate their growth. Apparently, 2010 saw AppSense increase revenue by 60%, selling over 1.5 million paid user licenses thanks to deals with companies like Microsoft and McAfee. It was enough to get Goldman Sachs’ interest, and now they’re planning on keeping that momentum going.
As a quick refresher, the AppSense user virtualization solution relies on decoupling the desktop from the hardware, enabling customers to access their “computer” from anywhere. It’s not hard to see how that could fit into a cloud services provider’s portfolio, and no doubt that as the cloud market grows, so will demand for solutions of that type.
In a common move for investment deals, Goldman Sachs Managing Director Pete Perrone will be joining the AppSense board to help guide the company as it spends their new funds.