Zscaler Raises $100M to Grow Internet Security as a Service Platform update from August 2015

Wants to replace what it says are arcane physical security appliances

Data Center Knowledge

August 6, 2015

1 Min Read
Zscaler Raises $100M to Grow Internet Security as a Service Platform
(Screenshot via Zscaler)

Internet security firm Zscaler announced it has raised $100 million to step up global expansion and sales efforts for its platform. The funding round was led by late-stage investor TPG, with existing investors EMC and Lightspeed Ventures contributing. With a total amount raised now at $138, million the company places its valuation at over $1 billion, as it prepares for a potential IPO.

The seven-year-old Silicon Valley firm provides real-time insights into security issues through a multi-tenant, distributed cloud service, with claims of protecting over 13 million users across 5,000 global companies and government organizations. Numerous well-known companies are listed as customers, and the company has been recognized as a leader in Gartner's Magic Quadrant for Secure Web Gateways and the Forrester Research Forrester Wave for SaaS Web Content Security.

Zscaler founder and CEO Jay Chaudhry describes its Security-as-a-Service platform as a disruptor in the field, where old appliance-based gateways are no longer effective, saying the startup's cloud approach will better service a mobile and cloud-first world.

ZscalerRecently released a cloud-based firewall and said it continued to have record bookings, revenue, and renewals. The company cited a third-quarter win with a multi-million subscription by one of the world's largest banks.

"We see tremendous opportunity in the rapidly-growing cybersecurity industry, and after spending significant time in the space, we found Zscaler to be the leading cloud-based security solution for the world’s largest and most demanding customers—a true SaaS platform like that of Salesforce or Workday," Nehal Raj, partner at TPG, said in a statement.

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Data Center Knowledge, a sister site to ITPro Today, is a leading online source of daily news and analysis about the data center industry. Areas of coverage include power and cooling technology, processor and server architecture, networks, storage, the colocation industry, data center company stocks, cloud, the modern hyper-scale data center space, edge computing, infrastructure for machine learning, and virtual and augmented reality. Each month, hundreds of thousands of data center professionals (C-level, business, IT and facilities decision-makers) turn to DCK to help them develop data center strategies and/or design, build and manage world-class data centers. These buyers and decision-makers rely on DCK as a trusted source of breaking news and expertise on these specialized facilities.

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