DriveNets wants software to replace networking hardware, raises $208 million


As digital transformation takes on higher urgency throughout the pandemic, enterprises wanting to speed up their plans usually encounter cumbersome and costly networking prices. Now an Israeli startup working with telecommunications suppliers is hoping to clear up the issue with software that eliminates the necessity for a lot of the normal {hardware}.

DriveNets right this moment introduced it has raised $208 million, sending its valuation over $1 billion. D1 Capital Partners led the spherical, which included new investor Atreides Management and former traders like Bessemer Venture Partners and Pitango. The funding comes about two years after DriveNets raised $110 million.

DriveNets CEO and cofounder Ido Susan says telco suppliers that undertake the corporate’s software are ready to provide higher economics to enterprise customers, who can then deploy new companies for much less cash.

“Once you have shared resources, once you have everything on top of that solution, it’s reducing cost per bit,” Susan stated. “It’s monetizing much better your investment. And it speeds up innovation.”

Founded in 2016 by Susan and cofounder Hillel Kobrinsky, the corporate goals to carry the identical type of disruption to networking that’s occurring in different sectors, similar to storage. Network visitors was already hovering earlier than the pandemic, and projections point out that it’ll proceed to speed up with the transfer to bigger video codecs and higher mobility, in addition to higher virtualization.

“Industries like compute and storage had already moved to be software, in order to support the scale and the demand of the traffic,” Susan stated. “But networking still has a hardware solution. And I think this is a bottleneck.”

This scenario is continually forcing telco suppliers to deploy extra tools to deal with surges in use. And enterprises should do the identical to develop or roll out new companies. DriveNets sells what it calls its Network Cloud software to telco firms, which then present it as a service to massive prospects.

While DriveNets has introduced AT&T as a serious buyer, it’s working with dozens of different suppliers, Susan stated. DriveNets’ software permits these suppliers to run visitors from many shoppers over the identical infrastructure whereas the software guides visitors. Customers just like the service as a result of they will enhance community capability with out putting in massive quantities of latest {hardware}.

The system can retain sturdy privateness and safety so it’s additionally viable for bigger monetary establishments or different firms dealing with notably delicate information.

DriveNets plans to use the most recent funding to proceed product growth whereas increasing into new territories and hiring staff to sustain with demand.


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