RealTime IT News

CenterBeam Wins $115M

Subscription computing provider CenterBeam announced a huge $115 million funding round Monday (Nov 6), bringing the cumulative investment in the company to over $175 million.

CenterBeam plans to use proceeds from this strategic financing round to expand its domestic operations and launch into overseas markets. Additionally the monies will be used for continued investments in technology and support infrastructure.

CenterBeam's new strategic investors include Apax Partners and its U.S. member firm, Patricof & Co. Ventures, Equity Office Properties Trust, Merrill Lynch, Charter Growth Capital, EDS Ventures and Comdisco. Returning investors in this funding round include Accel Partners, CrossPoint Venture Partners, Dell Ventures, Intel Capital, Impact Venture Partners, New Enterprise Associates and Tangent Fund Management.

"Despite the current volatility in the capital markets, new investors are still willing to invest in companies with a solid business model and long-term growth potential," said Sheldon Laube, chairman and CEO of CenterBeam. "The combination of CenterBeam's proven ability to deliver an enterprise-class technology infrastructure and the strength of our execution team were key factors in securing this strategic round of funding. We are now well positioned to meet the growing demands of our customers as well as continue our leadership role in the IT outsourcing market."

The key components of CenterBeam's enterprise-class technology service are a wireless LAN solution, Dell PCs and servers, Microsoft Windows/Office 2000, HP printers, high-speed Internet connectivity, daily data backup and recovery, comprehensive security, hardware/software upgrades, and dedicated customer support. All of these services are engineered into a completely managed IT solution for a monthly, per-user fee.

The predictable monthly pricing model is a dramatic shift in how IT services are offered and how companies manage, deploy and build their IT infrastructures. Instead of having to make large up-front capital investments in hardware, software and staff, the CenterBeam customer has a predictable cost model that covers all their IT costs. The fixed fee alleviates customers' concern about unexpected downtime, repair costs, changes in personnel and upgrades.

The CenterBeam MarketPlace is a collection of ASPs offering products and services for small and mid-sized businesses, including applications for accounting and financial, communications, CRM, e-business, HR, project management, purchasing, marketing and training. MarketPlace members include NetLedger, OpenAir, Evoke Communications, Agillion, OneCore, EmployEase, PureCarbon, Salesforce.com and Learn2.com.

See related story on SiliconValley.Internet.com, THIS WEEK'S Q&A: Sheldon Laube, CEO CenterBeam, Nov 6th 2000.