CloudOne, which provides hosting and a software-as-a-service option for companies using the popular IBM Rational software-development platform, has closed $1.7 million in funding.

Fishers, Indiana-based CloudOne helps customers transform how they design, develop, and deliver software by providing cloud hosting, flexible licensing, and operations management. Its pay-as-you-go model allows businesses to adapt their IT needs to current demands. Its customers include Costco, McDonald’s, and Panasonic, as well as the University of California and government agencies like the FAA.

Elevate Ventures provided $825,000 of the round through Indiana’s 21st Century Fund and the Indiana Angel Network Fund. Elevate invests in small businesses to help grow Indiana-based jobs in information technology, life sciences, and advanced manufacturing. The remainder of the round came from current investors.

“It is very gratifying to receive such a significant vote of confidence from Elevate Ventures. We take this commitment from the State very seriously and aim to build our business in this state, helping create a cloud-based technology company that works with customers around the world to deliver a cost-effective solution for Rational software development,” said CEO John P. McDonald.

CloudOne added Ryan Pfenninger of Elevate Ventures to its board of directors. The company will use the money to add engineers and sales representatives to their team. The company was started in 2010 to serve as the “on-ramp” for IBM Rational customers to the cloud.

Photo credit: Stokkete/Shutterstock