Our investment in Nubity seed round

Managing your IT infrastructure is typically not your core competency, but it is Nubity’s

Think about Nubity as an IT version of TechCrunch Disrupt 2014 winner “Alfred”. Companies run their virtual servers on Amazon’s AWS, IBM Softlayer, Rackspace or a bunch of competing services that race each other at blazing speeds to commoditize processing power, memory and bandwidth. Some of our customers also contract services to reduce costs, optimize usage & monitor potential security issues. Nubity sits on top of all these services and manages infrastructure alerts and alarms, ensuring improved up time and consistent deployments–all in all a happier virtual/cloud server experience. Today, Nubity manages servers. Tomorrow Nubity will be your service provider to monitor and manage all your virtual infrastructure, including cloud servers and software platforms.

We are happy to announce our participation in the recently completed seed round for Nubity, Sysadmin as a Service.

The problem

IT resources, such as cloud servers, are becoming increasingly integral to any business but remain a noncore function. Small and medium businesses that use the cloud seldom have the necessary expertise and resources to manage this infrastructure effectively. The result is subpar utilization and/or expensive management (i.e. a $100/hr programmer may take a couple of hours to solve a server problem, for the same price a company could have delegated their server management for an entire month to Nubity).

The solution

Nubity provides the full spectrum of services helping small and medium businesses manage their IT infrastructure through a simple monitoring tool that groups and summarizes warnings and alerts across multiple server providers (multi-cloud). The monitoring tool also provides customers the opportunity to fully outsource their server management needs 24/7, allowing Nubity to provide comprehensive and preventative maintenance to all your IT resources.

The opportunity

Cloud computing spend in Latin America is in the $ billions and while growing overall, it is becoming increasingly affordable on a per unit of processing power (or per unit of memory). If businesses can delegate the management of these low cost servers to platforms such as Nubity, adoption of cloud computing will increase. Nubity can make money on both sides of the table: helping small and medium companies adopt cloud computing and helping cloud companies differentiate their offering based on service quality.

Challenges

• Nubity is an outsourced service managing mission critical equipment and information. Operating errors could cause serious reputational issues
• Low cost competition can emerge from countries such as India or via automated service platforms, that provide 80% of Nubity value for 20% of cost
• Customer acquisition costs maybe high given SMB market fragmentation and sophistication level (i.e. ability of customers to carve out Nubity functions)

If you are an IT manager and want to reduce your System Administration costs, increase reliability and security, or want to delegate 24/7 server management to a specialized firm, consider trying out Nubity.

Investors with extensive IT and corporate sales experience in North America feel free to contact us regarding our potential next equity raising rounds as Nubity prepares to increase its participation in the North American market.

For additional information on the cloud server industry, and the importance of high quality customer support and system administration, see the recent Rackspace investor presentation emphasizing its “Fanatical Support” as its key differentiator vs other cloud companies.

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