Aryaka Networks, a provider of a cloud-based service that trims bandwidth usage and latency concerns for large companies, is launching today and has raised $14 million in its first round of funding.
The Milpitas, Calif., company provides optimization tools for wide-area networks (WANs), helping reduce bandwidth usage and mitigate latency issues that plague some large companies that need to transmit large amounts of data around the world by optimizing the files that are transferred. Aryaka Networks uses a number of methods. One of them, called deduplication, transmits only changes in a file rather than sending the complete file a second or third time.
The 75-person company is headed by Ajit Gupta (pictured left), whose previous company, content delivery network Speedera, was acquired by Akamai networks for more than $500 million. Aryaka’s funding to date comes from Trinity Ventures, Mohr Davidow Ventures, Nexus Venture Partners and Stanford University.
Aryaka Networks provides a browser-based interface that requires no client-side setup and maintenance, while other providers of WAN optimization offer appliances that require a “do-it-yourself” setup to handle the optimization. A portion of the data transmitted by a company passes through a number of quick-fire optimization processes at Aryaka Networks’ global offices in the U.S., Europe and Asia where and is then sent to its destination.
“Everything has been planned and you can just sit back and relax and get your work done,” said Ajit Gupta (pictured left), the company’s president and CEO.
Gupta expects his company’s cloud-based model to put other WAN optimization providers that offer their services in the form of a client-side “box” out of business. The market for providing WAN optimization isn’t very saturated, with only about 300,000 of a potential 8 million businesses getting on board, he said. Estimates from Gartner also peg the WAN optimization market as reaching $4.27 billion globally by 2014, according to Aryaka Networks.
“We discovered in our research that people were getting fed up with the cost and complexity and management aspects of it,” Gupta said. “So after about six months we cracked the code for it — which was tough, because it was something that hadn’t been attempted before — and approached our VCs with the idea and they liked it.”
Aryaka Networks was founded in November 2008 and secured its first round of funding in May 2009 but is now launching after successfully testing the product with 10 customers.