Tideway, one of the fastest growing providers of IT automation software, today announced the completion of a $27 million Series C round of financing led by new investor Scottish Equity Partners (SEP).
The Series C round funding brings the total equity investment in Tideway to $37.5 million, including follow-on investments from APAX, senior management and other existing investors.
Tideway will use the proceeds to drive new customer acquisition, expand its partner ecosystem, power continued product innovation and meet escalating market demand for data center optimization. Demand is being fueled by the current economic climate, in which global enterprises are seeking to reduce IT costs and operational risk while remaining competitive with new product and service offerings.
Fearghal O'Riordain, a Partner with SEP said: "Tideway has already demonstrated a clear leadership position with the most widely deployed application dependency mapping (ADM) solution in the industry. The market is still in an evolutionary phase with much innovation and growth still to come. Tideway is very well positioned to capitalize on that and to secure its position as the dominant player in an expanding category."
The Series C funding follows a year in which Tideway doubled its installed customer base and dramatically increased revenue. The company's growth was driven by significant new customer acquisitions across a range of verticals including financial services, telecommunications, manufacturing, pharmaceuticals and government.
In October 2007 the company launched Tideway Foundation 7.0, whose customizable automation capability offers the broadest, deepest, most up-to-date coverage of vital data center technologies and business applications. Tideway was recently named in the list of Top 10 Enterprise Management Tools by Network Computing, based on the strong performance of Foundation.
In a December 2007 article in Network World titled The Top Three IT Technologies that Matter for 2008 - and Beyond, Evelyn Hubbert, senior analyst at Forrester Research noted that in the coming year, ADM will become less secondary and more primary for companies wanting proactive management of business-critical applications. "Companies with dynamic applications, and there are fewer companies that don't have such applications, cannot afford for them to go down, and ADM will become part of the infrastructure to support and maintain applications."
Richard Muirhead, Founder and CEO of Tideway said: "Enterprises today need a fresh alternative to the traditional legacy IT management framework vendors who are often hamstrung by M&A activity, which leaves them more focused on integration than innovation. This round allows us to continue meeting demand for simple solutions that help firms large and small cut data center costs and reduce operational risk."