GOC

Another open source software company gained substantial support Monday as San Mateo-based Vyatta completed its Series B round of financing, led by Comcast (News - Alert) Interactive Capital (affiliated with telecom company Comcast Corp.).

 

Comcast Interactive, and Vyatta’s existing investors (including JPMorgan Partners, ComVentures, and ArrowPath Venture Partners) together contributed $18.5 million. Vyatta, which is in the midst of expanding its market penetration and product delivery, and will use the funds for operating capital.

 

In addition to providing funding, Comcast Interactive joined Vyatta’s board of directors to help the company address service provider market opportunities for its open source, networking software solutions.

 

The company’s software make it possible for anyone to own an enterprise-class router, firewall, and virtual private network (VPN), at a fraction of the cost of a comparable proprietary product. Vyatta offers three solution packages: Community Edition (free), Professional Edition (starts at $647) and Enterprise Edition (starts at $897). These packages are available via subscription, or as a pre-configured hardware appliance designed for easy integration with existing networks.

 

Deepak Sindwani, principal at Comcast Interactive, explained that Vyatta’s solutions meet the needs of today’s service providers, which are always on the lookout for products that can help them generate new revenue streams.

 

“Through its innovative use of open-source technologies and integration with best-of-breed third-party applications, Vyatta enables several new potential managed service bundles for small and medium-sized business and enterprise markets,” Sindwani said in a statement. “Further, its use of standard x86 hardware provides the opportunity for fundamentally better economics than proprietary hardware products.”

On its Web site, Vyatta explains that its name is the Sanskrit word for “open,” selected to convey the company’s goal of delivering “cost savings, increased flexibility and choice, and better security,” goals that are part of the larger open source mission to shift “the balance of power from large corporations back to the users of products.”

 

With financial backing form Comcast Interactive and its other funding partners, Vyatta is now sitting pretty to achieve its mission.

 

“This investment by Comcast Interactive Capital provides further validation of Vyatta's vision,” Vyatta CEO Kelly Herrell said in a statement. “Whether deployed by enterprises or delivered as premise equipment by service providers, the network infrastructure market is at the beginning of a profound wave of change driven by the power of openness.”

 

Herrell added: “Vyatta is poised to capitalize on this dynamic, and we look forward to working with Comcast Interactive Capital as we drive this change.”

 

 

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Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page. Also check out her Wireless Mobility blog.