FireHydrant lands $8M Series A for disaster management tool

When I spoke to Robert Ross, CEO and co-founder at FireHydrant, we had a technology adventure. First the audio wasn’t working correctly on Zoom, then Google Meet. Finally we used cell phones to complete the interview. It was like a case study in what FireHydrant is designed to do — help companies manage incidents and recover more quickly when things go wrong with their services.

Today the company announced an $8 million Series A from Menlo Ventures and Work-Bench. That brings the total raised to $9.5 million, including the $1.5 million seed round we reported on last April.

In the middle of a pandemic with certain services under unheard of pressure, understanding what to do when your systems crash has become increasingly important. FireHydrant has literally developed a playbook to help companies recover faster.

These run books are digital documents that are unique to each company and include what to do to help manage the recovery process. Some of that is administrative. For example, certain people have to be notified by email, a Jira ticket has to be generated and a Slack channel opened to provide a communications conduit for the team.

While Ross says you can’t define the exact recovery process itself because each incident tends to be unique, you can set up an organized response to an incident and that can help you get to work on the recovery much more quickly. That ability to manage an incident can be a difference maker when it comes to getting your system back to a steady state.

Ross is a former site reliability engineer (SRE) himself. He has experienced the kinds of problems his company is trying to solve, and that background was something that attracted investor Matt Murphy from Menlo Ventures.

“I love his authentic perspective, as a former SRE, on the problem and how to create something that would make the SRE function and processes better for all. That value prop really resonated with us in a time when the shift to online is accelerating and remote coordination between people tasked with identifying and fixing problems is at all time high in terms of its importance. Ultimately we’re headed toward more and more automation in problem resolution and FH helps pave the way,” Murphy told TechCrunch.

It’s not easy being an early-stage company in the current climate, but Ross believes his company has created something that will resonate, perhaps even more right now. As he says, every company has incidents, and how you react can define you as a company. Having tooling to help you manage that process helps give you structure at a time you need it most.

BetterCloud scores $75M Series F as SaaS management needs grow

BetterCloud gives IT visibility into its SaaS tools providing the means to discover, manage and secure those tools. In the middle of a crisis that has forced most companies to move workers home, being able to manage SaaS usage in this way is growing increasingly significant.

Today the company announced a $75 million Series F. Warburg Pincus led the way with participation from existing investors Bain Capital Ventures, Accel, Greycroft Partners, Flybridge Capital Partners, New Amsterdam Growth Capital and e.ventures. Today’s round brings the total raised to $187 million, according to the company.

While CEO David Politis acknowledges the gravity of the current situation, he also recognizes that giving companies a way to manage their SaaS usage is more pertinent than ever. “What has happened in the last two months has been terrible for the world, but in some crazy way it has just made what we do a lot more relevant,” Politis told TechCrunch .

He says the pandemic has really accelerated the market opportunity because of the reliance on cloud services and the services his company provides.

Those services began as an operational layer on top of G Suite. Later it added support for Office 365 and in 2016 it moved to more general SaaS management. It now offers direct integrations into multiple SaaS apps including Box, Dropbox, Salesforce, Zendesk and more. The set of tools in Bettercloud gives IT control over security, configuration, spend optimization and auditability across SaaS applications.

In normal times after a large Series F round, we might be talking about this being the last round before an IPO, but Politis isn’t ready to commit to that just yet, especially in this economy. He does say, however, that he’s in it for the long haul and sees an opportunity to build a long-term, sustainable company.

“The last couple of months I’ve been thinking about this a lot, and when you take a $75 million round at the stage you’re not doing that because you want to sell the business. You’re doing that because you want to build something and build something really special,” he said.

Directly, which taps experts to train chatbots, raises $11M, closes out Series B at $51M

Directly, a startup whose mission is to help build better customer service chatbots by using experts in specific areas to train them, has raised more funding as it opens up a new front to grow its business: APIs and a partner ecosystem that can now also tap into its expert network. Today Directly is announcing that it has added $11 million to close out its Series B at $51 million (it raised $20 million back in January of this year, and another $20 million as part of the Series B back in 2018).

The funding is coming from Triangle Peak Partners and Toba Capital, while its previous investors in the round included strategic backers Samsung NEXT and Microsoft’s M12 Ventures (who are both customers, alongside companies like Airbnb), as well as Industry Ventures, True Ventures, Costanoa Ventures and Northgate. (As we reported when covering the initial close, Directly’s valuation at that time was at $110 million post-money, and so this would likely put it at $120 million or higher, given how the business has expanded.)

While chatbots have now been around for years, a key focus in the tech world has been how to help them work better, after initial efforts saw so many disappointing results that it was fair to ask whether they were even worth the trouble.

Directly’s premise is that the most important part of getting a chatbot to work well is to make sure that it’s trained correctly, and its approach to that is very practical: find experts both to troubleshoot questions and provide answers.

As we’ve described before, its platform helps businesses identify and reach out to “experts” in the business or product in question, collect knowledge from them, and then fold that into a company’s AI to help train it and answer questions more accurately. It also looks at data input and output into those AI systems to figure out what is working, and what is not, and how to fix that, too.

The information is typically collected by way of question-and-answer sessions. Directly compensates experts both for submitting information as well as to pay out royalties when their knowledge has been put to use, “just as you would in traditional copyright licensing in music,” its co-founder Antony Brydon explained to me earlier this year.

It can take as little as 100 experts, but potentially many more, to train a system, depending on how much the information needs to be updated over time. (Directly’s work for Xbox, for example, used 1,000 experts but has to date answered millions of questions.)

Directly’s pitch to customers is that building a better chatbot can help deflect more questions from actual live agents (and subsequently cut operational costs for a business). It claims that customer contacts can be reduced by up to 80%, with customer satisfaction by up to 20%, as a result.

What’s interesting is that now Directly sees an opportunity in expanding that expert ecosystem to a wider group of partners, some of which might have previously been seen as competitors. (Not unlike Amazon’s AI powering a multitude of other businesses, some of which might also be in the market of selling the same services that Amazon does).

The partner ecosystem, as Directly calls it, use APIs to link into Directly’s platform. Meya, Percept.ai, and SmartAction — which themselves provide a range of customer service automation tools — are three of the first users.

“The team at Directly have quickly proven to be trusted and invaluable partners,” said Erik Kalviainen, CEO at Meya, in a statement. “As a result of our collaboration, Meya is now able to take advantage of a whole new set of capabilities that will enable us to deliver automated solutions both faster and with higher resolution rates, without customers needing to deploy significant internal resources. That’s a powerful advantage at a time when scale and efficiency are key to any successful customer support operation.”

The prospect of a bigger business funnel beyond even what Directly was pulling in itself is likely what attracted the most recent investment.

“Directly has established itself as a true leader in helping customers thrive during these turbulent economic times,” said Tyler Peterson, Partner at Triangle Peak Partners, in a statement. “There is little doubt that automation will play a tremendous role in the future of customer support, but Directly is realizing that potential today. Their platform enables businesses to strike just the right balance between automation and human support, helping them adopt AI-powered solutions in a way that is practical, accessible, and demonstrably effective.”

In January, Mike de la Cruz, who took over as CEO at the time of the funding announcement, said the company was gearing up for a larger Series C in 2021. It’s not clear how and if that will be impacted by the current state of the world. But in the meantime, as more organizations are looking for ways to connect with customers outside of channels that might require people to physically visit stores, or for employees to sit in call centres, it presents a huge opportunity for companies like this one.

“At its core, our business is about helping customer support leaders resolve customer issues with the right mix of automation and human support,” said de la Cruz in a statement. “It’s one thing to deliver a great product today, but we’re committed to ensuring that our customers have the solutions they need over the long term. That means constantly investing in our platform and expanding our capabilities, so that we can keep up with the rapid pace of technological change and an unpredictable economic landscape. These new partnerships and this latest expansion of our recent funding round have positioned us to do just that. We’re excited to be collaborating with our new partners, and very thankful to all of our investors for their support.”

Google Cloud earns defense contract win for Anthos multi-cloud management tool

Google dropped out of the Pentagon’s JEDI cloud contract battle fairly early in the game, citing it was in conflict with its “AI principals.” However, today the company announced a new seven-figure contract with DoD’s Defense Innovation Unit (DIU), a big win for the cloud unit and CEO Thomas Kurian.

While the company would not get specific about the number, the new contract involves using Anthos, the tool the company announced last year to secure DIU’s multi-cloud environment. In spite of the JEDI contract involving a single vendor, the DoD has always used solutions from all three major cloud vendors — Amazon, Microsoft and Google — and this solution will provide a way to monitor security across all three environments, according to the company.

“Multi-cloud is the future. The majority of commercial businesses run multi-cloud environments securely and seamlessly, and this is now coming to the federal government as well,” Mike Daniels, VP of Global Public Sector at Google Cloud told TechCrunch.

The idea is to manage security across three environments with help from cloud security vendor Netskope, which is also part of the deal. “The multi-cloud solution will be built on Anthos, allowing DIU to run web services and applications across Google Cloud, Amazon Web Services, and Microsoft Azure — while being centrally managed from the Google Cloud Console,” the company wrote in a statement.

Daniels says that while this is a deal with DIU, he could see it expanding to other parts of DoD. “This is a contract with the DIU, but our expectation is that the DoD will look at the project as a model for how to implement their own security posture.”

Google Cloud Platform remains way back in the cloud infrastructure pack, in third place with around 8% market share. For context, AWS has around 33% market share and Microsoft has around 18%.

While JEDI, a $10 billion, winner-take-all prize remains mired in controversy and an on-going battle between The Pentagon, Amazon and Microsoft, this deal shows that the defense department is looking at advanced technology like Anthos to help it manage a multi-cloud world regardless of what happens with JEDI.

Couchbase raises $105M Series G funding round

Couchbase. the Santa Clara-based company behind the eponymous NoSQL cloud database service, today announced that it has raised a $105 million all-equity Series G round “to expand product development and global go-to-market capabilities.”

The oversubscribed round was led by GPI Capital, with participation from existing investors Accel, Sorenson Capital, North Bridge Venture Partners, Glynn Capital, Adams Street Partners and Mayfield. With this, the company has now raised a total of $251 million, according to Crunchbase.

Back in 2016, Couchbase raised a $30 million down round, which at the time was meant to be the company’s last round before an IPO. That IPO hasn’t materialized, but the company continues to grow, with 30 percent of the Fortune 100 now using its database. Couchbase also today announced that, over the course of the last fiscal year, it saw 70 percent total contract value growth, more than 50 percent new business growth and over 35 percent growth in average subscription deal size. In total, Couchbase said today, it is now seeing almost $100 million in committed annual recurring revenue.

“To be competitive today, enterprises must transform digitally, and use technology to get closer to their customers and improve the productivity of their workforces,” said Couchbase President and CEO Matt Cain in today’s announcement. “To do so, they require a cloud-native database built specifically to support modern web, mobile and IoT applications.  Application developers and enterprise architects rely on Couchbase to enable agile application development on a platform that performs at scale, from the public cloud to the edge, and provides operational simplicity and reliability. More and more, the largest companies in the world truly run their businesses on Couchbase, architecting their most business-critical applications on our platform.”

The company is playing in a large but competitive market, with the likes of MongoDB, DataStax and all the major cloud vendors vying for similar customers in the NoSQL space. One feature that has always made Couchbase stand out is Couchbase Mobile, which extends the service to the cloud. Like some of its competitors, the company has also recently placed its bets on the Kubernetes container orchestration tools with, for example the launch of its Autonomous Operator for Kubernetes 2.0. More importantly, though, the company also introduced its fully-managed Couchbase Cloud Database-as-a-Service in February, which allows businesses to run the database within their own virtual private cloud on public clouds like AWS and Microsoft Azure.

“We are excited to partner with Couchbase and view Couchbase Server’s highly performant, distributed architecture as purpose-built to support mission-critical use cases at scale,” said Alex Migon, a partner at GPI Capital and a new member of the company’s board of directors. “Couchbase has developed a truly enterprise-grade product, with leading support for cutting-edge application development and deployment needs.  We are thrilled to contribute to the next stage of the company’s growth.”

The company tells me that it plans to use the new funding to continue its “accelerated trajectory with investment in each of their three core pillars: sustained differentiation, profitable growth, and world class teams.” Of course, Couchbase will also continue to build new features for its NoSQL server, mobile platform and Couchbase Cloud — and in addition, the company will continue to expand geographically to serve its global customer operations.

Salesforce Commerce Cloud releases four quick-start pandemic business packs

As we move deeper into the pandemic, it’s clear that the way we conduct business is changing, maybe forever. That means that business has to change too — and fast. But if you’ve never conducted business digitally or only nominally, how do you suddenly transform on the fly?

Salesforce Commerce Cloud CEO Mike Micucci says that they were hearing from customers they needed help. Salesforce decided to build four packages of services very quickly for customers specifically designed to help conduct business during COVID-19. The company even has SI partners who will run everything for the first three months, so these businesses don’t have to do much of anything except turn the key (so to speak).

The four tools are part of the Salesforce Quick Start Commerce Solutions and include Quick Start Commerce for D2C Consumer and Essential Goods to get a site up running fast, Quick Start Commerce for Grocery and Food Service to help restaurants and grocery stores set up online curbside food purchasing systems, Quick Start Commerce for B2B for companies setting up business-to-business sites and Quick Start Commerce for Buy Online and Curbside Pickup, which enables non-food companies to move in-store inventories online, and arrange curbside pick up systems.

Quick Start Commerce for Buy Online and Curbside Pickup. Image Credit: Salesforce

Micucci says that online commerce has been operating at a holiday kind of surge since we went into lockdown 10 weeks ago and customers have been clamoring for help. He said that they responded initially with a series of materials on best practices for getting online quickly, but customers wanted something more concrete.

“We needed to bring the software to bear on this. So we designed these four quick start packages. Essentially, the whole model was that we need to get you running in weeks, not months. The goal was literally [to get you up in] two weeks, and included software, obviously our cloud-based commerce and whatnot, but more importantly it included a package of services,” Micucci explained.

To build that package, it involved more than just Salesforce itself. It needed to get partners involved too to include payment, shipping, order management and other related kinds of tooling, depending on the package requirements.

Finally, they wanted to even remove the site management headaches from the customer, at least initially. Understanding that it would be difficult for businesses to train people internally to manage the system at this time, they got systems integrators involved to do it for them for the first three months. If the customer wants to take over sooner, they can, and if they want the SI to continue to manage the whole thing, that’s fine too.

As Salesforce itself moved out of the office and home, it was observing that online sales were spiking, and Micucci says after a couple of weeks of making sure the workforce was settled, he started hearing from customers about the problems they were having conducting business, and they went to work. The first of these packages came together in just a couple of weeks including partners.

They got them out to customers for quick Beta testing and refinement to the extent they could, but the guiding principle in producing these packages was speed over perfection. They realize the products will very likely require further refinement as they get out into the field, but they learned you can produce a package to meet a pressing customer need, and do it quickly, and that’s a lesson that will likely resonate even after this crisis is over.

Algolia gets a new CEO as founder steps down

Search-as-a-service startup Algolia is announcing some changes at the helm of the startup. Co-founder and CEO Nicolas Dessaigne is transitioning to a non-operational role at the company. He’ll still be a board member, but Bernadette Nixon is joining the company to take on the CEO position.

Algolia is building a search engine API. The company doesn’t want to build the next Google. Instead, it wants to power the search box on your website or app with instant letter-by-letter search results.

The company is managing the search feature on Slack, Stripe, Under Armour, Twitch and 9,000 other companies. At its current run rate, Algolia processes 1.2 trillion searches a year. The company says it touches 1 in 6 web users each day.

“The story started right after the Series C,” Dessaigne told me. Algolia raised a $110 million Series C round at the end of 2019. “I was super excited but what was most exciting for me was the potential of the company.”

“Someone with more go-to-market experience would probably be a better person at achieving that potential,” he continued.

I asked more directly whether the decision to replace him as CEO came from the board of the company or not. “It really started on my side. The board was supportive of the decision but it didn’t come from them,” he said.

Nixon was previously the CEO of Alfresco, the company that developed an open source enterprise content-management startup that was acquired by private equity firm Thomas H. Lee Partners in 2018. In the past, she held various positions as chief revenue officer, executive vice president of sales and senior vice president of corporate sales in different software companies.

As you can see, Nixon has a ton of experience when it comes to sales and operations in general. Her experience will be valuable when it comes to scaling the startup.

“I’m excited to be now part of the Algolia team and to be leading the company as of today,” Nixon told me. Accel, the VC firm that led the Series C round in Algolia, was also an investor in Alfresco.

The transition is going to take a couple of months and Dessaigne will stick around until July. He says that he doesn’t have any concrete plan about what he’s going to do next.

Over the past year, Algolia has been ramping up executive hires. Jean-Louis Baffier joined as chief revenue officer, Ashley Stirrup joined as chief marketing officer, Kristie Rodenbush joined as chief people officer and Iain Hassall joined as chief financial officer. In other words, Algolia is growing up and preparing for the next phase. Now let’s see if it leads to an IPO or an acquisition by a bigger player.

Microsoft launches Project Bonsai, its new machine teaching service for building autonomous systems

At its Build developer conference, Microsoft today announced that Project Bonsai, its new machine teaching service, is now in public preview.

If that name sounds familiar, it’s probably because you remember that Microsoft acquired Bonsai, a company that focuses on machine teaching, back in 2018. Bonsai combined simulation tools with different machine learning techniques to build a general-purpose deep reinforcement learning platform, with a focus on industrial control systems.

It’s maybe no surprise then that Project Bonsai, too, has a similar focus on helping businesses teach and manage their autonomous machines. “With Project Bonsai, subject-matter experts can add state-of-the-art intelligence to their most dynamic physical systems and processes without needing a background in AI,” the company notes in its press materials.

“The public preview of Project Bonsai builds on top of the Bonsai acquisition and the autonomous systems private preview announcements made at Build and Ignite of last year,” a Microsoft spokesperson told me.

Interestingly, Microsoft notes that project Bonsai is only the first block of a larger vision to help its customers build these autonomous systems. The company also stresses the advantages of machine teaching over other machine learning approaches, especially the fact that it’s less of a black box approach than other methods, which makes it easier for developers and engineers to debug systems that don’t work as expected.

In addition to Bonsai, Microsoft also today announced Project Moab, an open-source balancing robot that is meant to help engineers and developers learn the basics of how to build a real-world control system. The idea here is to teach the robot to keep a ball balanced on top of a platform that is held by three arms.

Potential users will be able to either 3D-print the robot themselves or buy one when it goes on sale later this year. There is also a simulation, developed by MathWorks, that developers can try out immediately.

“You can very quickly take it into areas where doing it in traditional ways would not be easy, such as balancing an egg instead,” said Mark Hammond, Microsoft general manager for Autonomous Systems. “The point of the Project Moab system is to provide that playground where engineers tackling various problems can learn how to use the tooling and simulation models. Once they understand the concepts, they can apply it to their novel use case.”

Gremlin brings chaos engineering to Windows platform

Chaos engineering is about helping companies set up worst-case scenarios and testing them to see what causes the operating system to fall over, but up until now, it has mostly been for teams running Linux servers. Gremlin, the startup that offers Chaos Engineering as a Service, released a new tool to give engineers working on Microsoft Windows systems access to a similar set of experiments.

Gremlin co-founder and CEO Kolton Andrus says that the four-year-old company started with Linux support, then moved to Docker containers and Kubernetes, but there has been significant demand for Windows support, and the company decided it was time to build this into the platform too.

“The same types of failure can occur, but it happens in different ways on different operating systems. And people need to be able to respond to that. So it’s been the blind spot, and we [decided to] prioritize the types of experiments that people [running Windows] need the most,” he said.

He added, “What we’re launching here is that core set of capabilities for customers so they can go out and get started right away.”

To that end, the Gremlin Windows agent lets engineers run experiments on shutdown, CPU, disk, I/O, memory and latency attacks. It’s worth noting that a third of the world’s servers still run on Windows, and having this ability to test these systems in this way has been mostly confined to companies that could afford to build their own systems in-house.

What Gremlin is doing for Windows is what it has done for the other supported systems. It’s enabling any company to take advantage of chaos engineering tools to help prevent system failure. During the pandemic, as some systems have become flooded with traffic, having this ability to experiment with different worst-case scenarios and figuring out what brings your system to its knees is more important than ever.

The Gremlin Windows agent not only gives the company a wider range of operating system support, it also broadens its revenue base, which is also increasingly important at a time of economic uncertainty.

The company, which is based in the San Francisco area, was founded in 2016 and has raised more than $26 million, according to Crunchbase data. The company raised the bulk of that, $18 million, in 2018.

Microsoft launches Azure Synapse Link to help enterprises get faster insights from their data

At its Build developer conference, Microsoft today announced Azure Synapse Link, a new enterprise service that allows businesses to analyze their data faster and more efficiently, using an approach that’s generally called “hybrid transaction/analytical processing” (HTAP). That’s a mouthful; it essentially enables enterprises to use the same database system for analytical and transactional workloads on a single system. Traditionally, enterprises had to make some trade-offs between either building a single system for both that was often highly over-provisioned or maintain separate systems for transactional and analytics workloads.

Last year, at its Ignite conference, Microsoft announced Azure Synapse Analytics, an analytics service that combines analytics and data warehousing to create what the company calls “the next evolution of Azure SQL Data Warehouse.” Synapse Analytics brings together data from Microsoft’s services and those from its partners and makes it easier to analyze.

“One of the key things, as we work with our customers on their digital transformation journey, there is an aspect of being data-driven, of being insights-driven as a culture, and a key part of that really is that once you decide there is some amount of information or insights that you need, how quickly are you able to get to that? For us, time to insight and a secondary element, which is the cost it takes, the effort it takes to build these pipelines and maintain them with an end-to-end analytics solution, was a key metric we have been observing for multiple years from our largest enterprise customers,” said Rohan Kumar, Microsoft’s corporate VP for Azure Data.

Synapse Link takes the work Microsoft did on Synaps Analytics a step further by removing the barriers between Azure’s operational databases and Synapse Analytics, so enterprises can immediately get value from the data in those databases without going through a data warehouse first.

“What we are announcing with Synapse Link is the next major step in the same vision that we had around reducing the time to insight,” explained Kumar. “And in this particular case, a long-standing barrier that exists today between operational databases and analytics systems is these complex ETL (extract, transform, load) pipelines that need to be set up just so you can do basic operational reporting or where, in a very transactionally consistent way, you need to move data from your operational system to the analytics system, because you don’t want to impact the performance of the operational system in any way because that’s typically dealing with, depending on the system, millions of transactions per second.”

ETL pipelines, Kumar argued, are typically expensive and hard to build and maintain, yet enterprises are now building new apps — and maybe even line of business mobile apps — where any action that consumers take and that is registered in the operational database is immediately available for predictive analytics, for example.

From the user perspective, enabling this only takes a single click to link the two, while it removes the need for managing additional data pipelines or database resources. That, Kumar said, was always the main goal for Synapse Link. “With a single click, you should be able to enable real-time analytics on your operational data in ways that don’t have any impact on your operational systems, so you’re not using the compute part of your operational system to do the query, you actually have to transform the data into a columnar format, which is more adaptable for analytics, and that’s really what we achieved with Synapse Link.”

Because traditional HTAP systems on-premises typically share their compute resources with the operational database, those systems never quite took off, Kumar argued. In the cloud, with Synapse Link, though, that impact doesn’t exist because you’re dealing with two separate systems. Now, once a transaction gets committed to the operational database, the Synapse Link system transforms the data into a columnar format that is more optimized for the analytics system — and it does so in real time.

For now, Synapse Link is only available in conjunction with Microsoft’s Cosmos DB database. As Kumar told me, that’s because that’s where the company saw the highest demand for this kind of service, but you can expect the company to add support for available in Azure SQL, Azure Database for PostgreSQL and Azure Database for MySQL in the future.