Berlin cloud tech company Zimory raises $20m led by financial giant Deutsche Boerse

German stock exchange
German stock exchange

German stock exchange

Berlin cloud tech company Zimory has raised a $20m funding round led by financial giant Deutsche Boerse, as part of a joint effort to make buying and selling cloud computing capacity as easy as swapping stocks.

The funding round, announced yesterday, brings on Deutsche Boerse as a new investor alongside Creathor Venture, High-Tech Gruenderfonds, IBB Beteiligungsgesellschaft, German development bank KFW and Deutsche Telekom’s investment arm T-Venture, all of whom also participated in the round. It follows Zimory’s initial €4m venture round in October 2010.

Deutsche Boerse runs several marketplaces in Europe, including the Frankfurt Stock Exchange. In partnership with Zimory, it’s about to launch Deutsche Boerse Cloud Exchange, the world’s first vendor-independent exchange for cloud computing capacity. The exchange is expected to go live in Frankfurt, New York and Singapore in 2014.

It’s actually better to compare this to electricity markets than stock markets – for years, power companies have been buying and selling generation capacity to make sure they can supply all their customers and turn a dollar on anything leftover.

The new cloud exchange will let IT service providers do the same with their spare computing capacity. Deutsche Boerse will handle the trading side of things; Zimory’s software will make the actual capacity swap happen. Both buyers and sellers will need to pay a transaction fee to use the platform.

Zimory’s new $20m in capital will go towards building the new cloud exchange and bringing its cloud infrastructure management services to other clients internationally. The company declined to comment on what the split there will be or what kind of revenue-sharing agreement is in place for the new cloud exchange. As well as Deutsche Boerse, Zimory – founded in 2007 – counts Deutsche Telekom, the Austrian government and New York’s International Securities Exchange (ISE) among existing clients.

The Deutsche Boerse Cloud Exchange isn’t the first cloud capacity marketplace out there – Amazon’s EC2 market lets its customers trade with each other, for example – but it’s likely to be the first not limited to a specific service provider. Other upcoming large-scale cloud exchanges include Virtustream’s xStream, which is expected to launch “at some point soon”.

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