PengYun Network Completes Series B, Aiming to Disrupt Cloud Storage Industry
PengYun raised Series B round of fundings to further promote research and development around their strategic products and efforts to broaden the cloud market.
On October 23, 2019, the cloud storage system developer PengYun Network (鹏云网络) officially announced the completion of a Series B of financing led by Envision Capital (维思资本). The company claimed that this round of investment would primarily be used to further promote research and development around their strategic products and efforts to broaden the cloud market.
PengYun has received millions of dollars from four financing rounds it has held, for which the exact values are all undisclosed. Investors include Sequoia (红杉资本中国), ZhenFund (真格基金), and Pusu Capital (朴素资本). Its lead investor is Envision Capital (维思资本).
With the explosion of data and a widespread use of data, traditional storage is unable to keep up with the expanding demand for a huge low-cost data storage. In the meantime, the development of Software-Defined Storage (SDS) has been advancing rapidly and the technology is trending to gradually replace traditional storage.
Established in 2012, PengYun is a high-tech enterprise specializing in SDS products and solutions. It is the first company in China to have developed a large-scale SDS system. It is also one of the few companies in China that has full cloud research capabilities.
In August 2015, PengYun successfully developed and launched the ZettaStor series of software-defined distributed storage products. ZettaStor boasts completely independent intellectual property rights and multiple technical patents, in terms of performance, scalability, availability, and reliability.
With ZettaStor software, the company has successfully served customers in a wide arrays of industries including government, finance, military, education, manufacturing, and several others.
In the first quarter of 2019, the SDS market income in China was reported to be approximately USD 150 million with a growth rate of 23.1%. The growth rate of object-based storage remains the main driving force for SDS’s impressive growth rate.
China’s SDS market is dominated by Huawei, which contributes about one-third of the total market share. H3C falls behind Huawei, with 13.2% of the market share, followed by Sugon with 11.3% and XSKY with 8.3%.
With the current rate of research development around SDS, China’s SDS market will grow at a Compounded Annual Growth Rate (CAGR) of 18.9% in the next five years, reaching USD 1.94 billion in 2023, of which the storage segment represents the highest market share of 56.7%, equivalent to USD 1.1 billion.