Riverbed Technology secures further $20m in funding

Reading, Berks - 01 February 2005- Riverbed Technology, the pioneer in wide area application acceleration, has secured $20 million (£10.6m) in Series C funding.

The lead investor was Goldman Sachs for Riverbed's third round of funding, with follow-on investments from Accel Partners, Lightspeed Venture Partners and UV Partners, which participated in the company's first two rounds of financing. Riverbed has raised a total of $37 million (£19.7m).

This marks the culmination of an excellent year for Riverbed. It launched its first product, the Steelhead appliance, in May last year, and in the eight months since the product release has sold it to over 70 enterprise customers and has deployed more than 500 units in six continents, including the UK.

Jerry M. Kennelly, president and CEO, Riverbed Technology said: "We are seeing strong and broad demand for our solutions in many vertical markets around the world, markets as diverse as energy, manufacturing, financial services, chemicals, professional services, architecture and many others. We have strong industry partners like EMC, HP, Microsoft and IBM, and we're expanding very quickly."

Riverbed's products can be applied to several categories of problems facing IT managers. First, Steelhead appliances can accelerate applications by up to 100 times on wide area networks, which directly impacts collaboration and productivity in global enterprises. Second, they can be the key to successful site consolidation of IT infrastructure like file servers, Exchange servers, NAS and tape backup equipment from remote offices to data centers. Third, Steelhead appliances are the highest performing network compression appliances on the market, offering unmatched bandwidth reduction. Fourth, the appliances can be used to fully utilise the capacity of a wide area network connection for customers who have high bandwidth high latency links.

Chief analyst at Bloor Research, Tony Lock, said recently of Riverbed: "Its Steelhead appliance has the potential to become an essential component in the WAN infrastructure of the bulk of organisations. WAN optimisation is set for a boom irrespective of the networking technologies utilised by organisations. Application access across the WAN is clearly better and usually cheaper using Steelhead."

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