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Synadia Raises Funding to Meet Multi-Cloud and Edge Computing Demand

Synadia Raises Funding to Meet Multi-Cloud and Edge Computing Demand

The News: Synadia Communications, the developer of the NATS.io messaging system, has secured a $25 million Series B funding round led by Forgepoint Capital, bringing Synadia’s total funding to $51 million, aiming to further develop NATS.io for edge computing applications. Founded in 2017 by CEO Derek Collison, Synadia addresses edge and multi-cloud computing challenges, establishing itself as a leader in supporting low-latency applications for multi-cloud and edge environments, with Forgepoint Capital’s Managing Director Ernie Bio joining Synadia’s board. Forgepoint Capital, a prominent venture capital firm with over $1 billion in assets, underscores the significant opportunity in edge computing and supports Synadia’s commitment to secure, cloud-agnostic solutions for developers and enterprises. See the complete funding announcement on the Synadia website.

Synadia Raises Funding to Meet Multi-Cloud and Edge Computing Demand

Analyst Take: It is clear that Synadia’s latest funding round marks a significant milestone in the evolution of edge computing and the role of messaging systems in enabling its growth. The $25 million Series B investment showcases the demand for cloud-native messaging solutions that can bridge the gap between cloud and edge environments. Synadia’s NATS.io, an open-source messaging system, has emerged as a key player in this space, offering developers a platform for building and deploying high-performance, low-latency applications at the edge.

Synadia’s CEO Derek Collison, the creator of NATS, founded the company in 2017 to address the challenges of edge and multi-cloud computing. The company has since established itself as a leader in developing and supporting highly available, low-latency applications and microservices for multi-cloud and edge environments. Synadia’s products include Synadia Cloud, which offers an easy-to-use admin portal for securing and visualizing data assets and streams in real time, and Synadia Platform, a fully supported version of NATS with enterprise-grade features. The company’s diverse customer base includes innovative startups and Global 500 enterprises in finance, retail, automotive, and industrial manufacturing, among others.

Forgepoint Capital is a leading cybersecurity and digital infrastructure software venture capital firm with over $1 billion in assets under management. The firm brings over 100 years of proven company-building experience and a portfolio of nearly 40 companies to support entrepreneurs advancing innovation globally. Synadia’s latest funding round underscores the significant opportunity in the edge computing market and the company’s commitment to providing secure, cloud-agnostic solutions for developers and enterprises.

The investment will enable Synadia to accelerate the development of NATS.io, further enhancing its capabilities for edge AI and multi-cloud applications. This is important as the edge computing market is expected to reach $250.6 billion by 2024, with a compound annual growth rate (CAGR) of 12.5% from 2019 to 2024, according to market data. As more organizations adopt edge computing to meet the demands of real-time data processing and low-latency applications, the need for reliable messaging systems such as NATS.io will only continue to grow.

Edge computing is becoming increasingly important as organizations seek to process data closer to the source while reducing latency and improving the overall performance of their applications. This is particularly critical for applications that require real-time data processing, such as those used in autonomous vehicles, industrial automation, and financial trading. Organizations can improve the responsiveness of their applications by processing data at the edge, which enables them to make faster decisions and deliver a better user experience.

Edge computing is also important for applications that require low-latency communication such as applications that rely on the Internet of Things (IoT) where devices need to communicate with each other in real-time. By processing data at the edge, organizations can reduce the latency of their applications and ensure that devices can communicate with each other efficiently.

With developers looking for access to a powerful and flexible messaging system that can support their edge computing initiatives, this investment should be of interest. NATS.io’s open-source nature allows developers to customize and extend the platform to meet their specific requirements, while its cloud-native architecture allows for integration with varied cloud providers. With the support of Forgepoint Capital and other investors, Synadia is well-positioned to further enhance NATS.io’s capabilities, providing developers with the tools they need to build and deploy edge applications at scale.

This is significant as edge computing continues to gain traction, with organizations increasingly relying on edge infrastructure to process data closer to the source and reduce latency. With this growing demand, developers will need messaging systems that can handle the unique challenges of edge computing including intermittent connectivity and limited resources. By investing in the development of NATS.io, Synadia is not only supporting the growth of edge computing but also empowering developers to create innovative edge applications.

The Developer and DevOps Advantage

The integration of NATS.io into DevOps workflows enhances the efficiency and reliability of continuous delivery and deployment processes. The platform’s lightweight and resilient nature streamlines communication between microservices, facilitating seamless deployment and scaling of applications across distributed environments. By leveraging NATS.io, DevOps teams can optimize resource utilization and mitigate operational complexities, thereby accelerating the development and deployment of edge applications.

Synadia’s investment in NATS.io not only addresses the evolving needs of developers and DevOps professionals but also catalyzes innovation in the realm of edge computing. With its adaptable architecture and robust capabilities, NATS.io emerges as a cornerstone for organizations striving to harness the potential of edge computing in an increasingly interconnected digital landscape.

Conclusion

Synadia’s latest funding round highlights the growing importance of edge computing and the role that messaging systems such as NATS.io play in enabling its success. As organizations continue to invest in edge computing to meet the demands of real-time data processing and low-latency applications, developers can rely on NATS.io to provide the performance, reliability, and scalability they need to build and deploy edge applications with confidence.

For developers, this funding represents more than just financial support for Synadia; it signifies a commitment to further enhancing NATS.io’s capabilities for edge AI and multi-cloud applications. With access to a powerful and flexible messaging system such as NATS.io, developers can streamline the development and deployment of edge applications by reducing time-to-market and accelerating innovation.

Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.

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Author Information

At The Futurum Group, Paul Nashawaty, Practice Leader and Lead Principal Analyst, specializes in application modernization across build, release and operations. With a wealth of expertise in digital transformation initiatives spanning front-end and back-end systems, he also possesses comprehensive knowledge of the underlying infrastructure ecosystem crucial for supporting modernization endeavors. With over 25 years of experience, Paul has a proven track record in implementing effective go-to-market strategies, including the identification of new market channels, the growth and cultivation of partner ecosystems, and the successful execution of strategic plans resulting in positive business outcomes for his clients.

Bringing more than a decade of varying experience crossing multiple sectors such as legal, financial, and tech, Sam Holschuh is an accomplished professional that excels in ensuring success across various industries. Currently, Sam serves as an Industry Analyst at The Futurum Group, where collaborates closely with practice leads in the areas of application modernization, DevOps, storage, and infrastructure. With a keen eye for research, Sam produces valuable insights and custom content to support strategic initiatives and enhance market understanding.

Rooted in the fields of tech, law, finance operations and marketing, Sam provides a unique viewpoint to her position, fostering innovation and delivering impactful solutions within the industry.
Sam holds a Bachelor of Science degree in Management Information Systems and Business Analytics from Colorado State University and is passionate about leveraging her diverse skill set to drive growth and empower clients to succeed in today's rapidly evolving landscape.

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