CipherCloud Gets $30 Million Investment For Cloud Security Business

By: Kevin Green  |   December 7th, 2012   |   Business, News

Cloud security startup, CipherCloud, announced on December 5 that it had received a $30 million dollar investment from Andreessen Horowitz who also took part in the $1.4 million seed funding round the company received when it got started. Horowitz will not sit on the board of directors but will have John Jack, former chief executive of Fortify Software, take his place.

 

More and more businesses are getting comfortable with using cloud based services. This growing number of users means that many more categories are using cloud based models and delivering various types of services. As the sector grows so does the need to keep both clients and providers secure by protecting the servers that run the cloud. CipherCloud is hoping to take care of the cloud security issue for companies by offering protection without interrupting functionality. The startup wants to create a setup where the protection is airtight but the user does not even know it exists.

 

Chief executive Pravin Kothari also mentions the added security of data that the service can provide by talking about the 10,000 PATRIOT Act requests the federal government has made in the first six months of the year. Data center employees must give up the information to the government but if they do not know the information then they cannot give anything. He says that with CipherCloud, “The customer holds onto the key. Never give it to the cloud provider.”

 

Even though many firms are moving to cloud services, there are still some large organizations that are concerned about moving all their data to another company’s servers. This concern for security and reluctance to accept cloud services may be something that CipherCloud can solve and help large firms make the switch. This may boost its profile and business.

Source: Pandodaily