Coming Soon: Virtustream IPO?
Virtustream is approaching a $100 million revenue run rate and soon could go public. The Washington, D.C.-based cloud software and services provider this week said it is considering filing for an initial public offering (IPO) within the next year.
Virtustream also has announced that it has added multiple new data center locations, two conditionally certified U.S. federal cloud nodes and new software sales and delivery offices in Europe. The cloud software and services provider noted that it plans to further expand into Asia too.
Rodney Rodgers, Virtustream’s CEO, told Talkin’ Cloud that his company already has numerous business goals in place for 2015, including:
- Building out Virtustream’s OpenStack feature sets
- Expanding the Virtustream xStream cloud management platform and AppDirect functionality
- Extending the capabilities of Virtustream’s predictive customer resource optimization services
“As large businesses and federal agencies are moving to the cloud at an unprecedented pace, they require application performance assurance, security features and compliance frameworks not found in other mainstream cloud services,” Rogers said in a prepared statement.
“We are answering this demand by expanding the reach of our business across the U.S. and around the world. We believe the fact that Virtustream is approaching the $100 million revenue run rate milestone as a five-year-old company reaffirms our approach to the market and makes us a unique growth story in the venture-backed cloud software and services space.”
What could going public mean for Virtustream and its customers?
Rogers pointed out that an IPO could mutually benefit both Virtustream and its customers.
“For current customers, [an IPO] will provide us the means to leverage the high-value cloud software and utility service IP we have built to date to access capital in a manner that is efficient to materially scale Virtustream’s business,” he said. “For prospects evaluating us against our competitors, it will provide public transparency into our financial wherewithal and stability. This is transparency we welcome.”
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Virtustream currently supports enterprises and government agencies worldwide.
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