Cloud computing and hybrid cloud provider Egnyte announced today that they raised $16 million from Google Ventures to improve their business. Besides Google, the existing investors Kleiner Perkins Caufield & Byers and Polaris Ventures were also included in the Series C round of financing.
Egnyte is an enterprise-focused cloud company and the purpose of this new investment will primarily be a development of the company’s position in the enterprise market. Considering how competitive this ground is Egnyte has to play very smart.
The company’s primary focus is on small to medium sized businesses and now, according to the company’s CEO Vineet Jain, they tend to become “Dropbox of the enterprise”. To achieve this they would have to overhaul their major competitor Box which is not going to be an easy task. Box is currently a leader in the enterprise market with $81 million raised last fall.
As for the service, Egnyte is commonly associated with the better technology as they have a hybrid cloud. Besides that, they allow unlimited file size upload while Box has limitation on file size of 25MB. Egnyte hosts fully integrated FTP service and provides good security options. They have recently started to collaborate with Sophos SafeGuard which heightened a level of their security.
Even though Egnyte has a variety of pricing plans this is not their most competitive feature. In comparison to most of the other cloud storage companies they are quite expensive. However, with all of the features it offers users do get a full value for the price they pay.
Egnyte claims around 600,000 users and in April this year it launched Box Buster Byout program to attract more of the Box’s customers. The newest $16 million investment would surely help them a lot in that.