On Wednesday, Seattle based Pulumi announced a $37.5M Series B round led by NEA with participation from Madrona Venture Group and Tola Capital. This latest funding round brings their total capital raised to $57.5M and allows Pulimi to continue expanding their team. The news comes in the wake of Pulimi’s recent product launch, Pulimi 2.0, which the company says will get them one step closer to becoming a “cloud engineering platform”.
Why this transaction?
The York IE team chose this as our transaction of the week to touch on cloud engineering and its role in infrastructure-as-code platforms. Pulimi is building off their original vision of infrastructure-as-code, with the latest release of Pulimi 2.0, and now implementing cloud engineering into their solution. With the help of their cloud engineering platform, Pulimi allows developers, infrastructure teams and governance teams to work together seamlessly across multiple platforms and technologies. Pulimi says they have seen user adoption increase more than 10x since the beginning of the year, Pulimi Co-Founder Eric Rudder explained the growth in adoption, “Clearly people are accelerating their move to the cloud…Projects that may have been on the backburner are now all of a sudden imperative to get to the cloud. That’s definitely accelerated the progress overall. And people are moving larger and larger portfolios to the cloud”. Other competitors such as Amazon’s AWS ElasticBeanstalk have built complementary solutions like AWS CloudFormation, to allow their users to streamline the development process. For Pulimi, their young standing in the market may actually benefit them as they’ve built a solution across multiple platforms and technologies; many of the original infrastructure-as-code platforms did not have this level of integration in mind. The cloud engineering market will likely continue to see accelerated growth in the coming years due to an industry shift that has made cloud the centerpiece of software development and an emphasis on continuity between developers, engineers and operations specialists.
Cloud As A Centerpiece
It is interesting to note the vast use cases of cloud across multiple different industries; today, cloud computing is being applied to the infrastructure-as-code market to automate governance and compliance related to applications. With products like Pulimi and AWS Cloud Infrastructure becoming more mainstream the York IE team wanted to take a look at funding rounds related to cloud computing:
What we found was that funding for cloud computing related software companies has been growing since 2011, reaching a peak in 2016 at nearly $9B raised. While compiling data on funding rounds, the York IE team noticed another interesting point; in 2020 alone, there have been nine funding rounds over $100M. This points to a clear shift in many industries as the COVID-19 pandemic has accelerated the move towards the cloud and stressed the importance of teams working seamlessly.