Gazzang Gets $3.5 Mln Series A Funding Led By Austin Ventures

Gazzang said Monday that it has secured $3.5 million in Series A funding led by Austin Ventures. Larry Warnock, who led the acquisition of Phurnace Software by BMC Software earlier this year, has joined Gazzang as CEO. Gazzang, with offices in Houston and Austin, Texas, is a cloud infrastructure software company.


Gazzang, Inc., the cloud infrastructure software company, today announced it has secured $3.5 million in Series A funding to develop management solutions that help secure open source software such as Linux, Apache, MySQL, PHP/Perl (LAMP), and accelerate enterprise adoption of public, private and hybrid cloud environments. Austin Ventures was the lead institutional investor, accompanied by a group of smaller individual investors. In addition, software industry veteran Larry Warnock, who led the acquisition of Phurnace Software by BMC Software earlier this year, has joined Gazzang as CEO.

Gazzang’s first product suite addresses one of the biggest concerns in the cloud – data security. A 2009 report from the SANS Institute Report called web application attacks from open source breaches one of the top cyber security risks for companies. While data encryption exists for large commercial databases such as Oracle and Microsoft SQL Server, until now enterprise-class encryption has not been available for MySQL, the world’s most popular open source database with 25 percent market share.

More than 60 customers have adopted Gazzang’s solutions across the financial services, healthcare, higher education and technology verticals where issues of data security in the cloud face heightened scrutiny under PCI DSS, HIPAA and other regulatory mandates.

“Cloud computing represents a discontinuous innovation that is changing the way enterprises consume and deliver critical business services,” said Thomas Ball, partner at Austin Ventures. “By recognizing an early customer pain in the adoption of cloud platforms, Gazzang has quickly established an impressive track record with its core client base. We see incredible opportunity in the road ahead, and view this as an excellent fit for our early-stage investment portfolio.”

Gazzang’s first product offering, ezNcrypt, is a “set and forget” solution for encrypting MySQL database transactions and data. The solution’s patent-pending transparent data encryption (TDE) process auto-encrypts MySQL data at rest with dual authentication keys without making changes to existing applications or databases. Key features of this enterprise-scale solution include:

* Unlimited encryption of MySQL databases, tables and files
* Hosted Key Storage System (KSS)
* Protection against system and local users
* Compliance with PCI DSS, HIPAA, HITECH, FISMA and other industry-specific regulations
* Scalable, pay-as-you-go-per-server subscription licensing
* Local, standard and enterprise editions for flexible implementation (inside the firewall or private/public/hybrid clouds)

Moving forward, the company will extend its core management capabilities to the entire LAMP stack including application, presentation and operating system layers, providing customers a complete data encryption security solution.

“Gazzang is attacking one of the biggest inhibitors to enterprise-wide adoption of the cloud – data security – but we’re not stopping there,” said Larry Warnock, CEO of Gazzang. “We plan to leverage our success in data security to become a major player in the delivery of IaaS management platforms for cloud environments. It is still early days in this space, but our initial customer successes prove we’re on the right path toward maximizing this incredible market opportunity.”

For more information or to request a product demo contact:

About Gazzang

Gazzang makes cloud computing enterprise-ready. Our Infrastructure-as-a-Service (IaaS) solutions help organizations address the inherent risk associated with open source software tools, beginning with data encryption of MySQL databases and ultimately migrating all the way up the LAMP stack (Linux, Apache, MySQL, PHP). With more than 60 customers in financial services, healthcare, higher education and technology, we know what it takes to deliver secure, compliant business services in today’s uncertain cloud environments. Founded in 2008, Gazzang is backed by Austin Ventures, with offices in Houston and Austin, Texas. For more info, visit

About Austin Ventures

Austin Ventures (“AV”) has worked with talented entrepreneurs to build valuable companies for over twenty-five years. With $3.9 billion under management, AV is the most active venture capital and growth equity firm in Texas and one of the most established in the nation. With an investment focus on business services and supply chain, financial services, new media, Internet and information services, software, and Texas special situations, AV invests at all stages of company development, from $100,000 in “planned experiments” in early stage ideas to $100+ million investments in expansion rounds, minority recapitalizations, and buyouts of lower middle market growth companies. AV’s strategy is to partner with talented executives and entrepreneurs through its CEO-in-Residence and Entrepreneur-in-Residence programs. Visit Austin Ventures for more information.