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Egnyte hauls in $75M investment led by Goldman Sachs

Egnyte launched in 2007 just two years after Box, but unlike its enterprise counterpart, which went all-cloud and raised hundreds of millions of dollars, Egnyte saw a different path with a slow and steady growth strategy and a hybrid niche, recognizing that companies were going to keep some content in the cloud and some on prem. Up until today it had raised a rather modest $62.5 million, and hadn’t taken a dime since 2013, but that all changed when the company announced a whopping $75 million investment.

The entire round came from a single investor, Goldman Sachs’ Private Capital Investing arm, a part of Goldman’s Special Situations group. Holger Staude, vice president of Goldman Sachs Private Capital Investing will join Egnyte’s board under the terms of the deal. He says Goldman liked what it saw, a steady company poised for bigger growth with the right influx of capital. In fact, the company has had more than eight straight quarters of growth and have been cash flow positive since Q4 in 2016.

“We were impressed by the strong management team and the company’s fiscal discipline, having grown their top line rapidly without requiring significant outside capital for the past several years. They have created a strong business model that we believe can be replicated with success at a much larger scale,” Staude explained.

Company CEO Vineet Jain helped start the company as a way to store and share files in a business context, but over the years, he has built that into a platform that includes security and governance components. Jain also saw a market poised for growth with companies moving increasing amounts of data to the cloud. He felt the time was right to take on more significant outside investment. He said his first step was to build a list of investors, but Goldman shined through, he said.

“Goldman had reached out to us before we even started the fundraising process. There was inbound interest. They were more aggressive compared to others. Given there was prior conversations, the path to closing was shorter,” he said.

He wouldn’t discuss a specific valuation, but did say they have grown 6x since the 2013 round and he got what he described as “a decent valuation.” As for an IPO, he predicted this would be the final round before the company eventually goes public. “This is our last fund raise. At this level of funding, we have more than enough funding to support a growth trajectory to IPO,” he said.

Philosophically, Jain has always believed that it wasn’t necessary to hit the gas until he felt the market was really there. “I started off from a point of view to say, keep building a phenomenal product. Keep focusing on a post sales experience, which is phenomenal to the end user. Everything else will happen. So this is where we are,” he said.

Jain indicated the round isn’t about taking on money for money’s sake. He believes that this is going to fuel a huge growth stage for the company. He doesn’t plan to focus these new resources strictly on the sales and marketing department, as you might expect. He wants to scale every department in the company including engineering, posts-sales and customer success.

Today the company has 450 employees and more than 14,000 customers across a range of sizes and sectors including Nasdaq, Thoma Bravo, AppDynamics and Red Bull. The deal closed at the end of last month.

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Dropbox overhauls internal search to improve speed and accuracy

Over the last several months, Dropbox has been undertaking an overhaul of its internal search engine for the first time since 2015. Today, the company announced that the new version, dubbed Nautilus, is ready for the world. The latest search tool takes advantage of a new architecture powered by machine learning to help pinpoint the exact piece of content a user is looking for.

While an individual user may have a much smaller body of documents to search across than the World Wide Web, the paradox of enterprise search says that the fewer documents you have, the harder it is to locate the correct one. Yet Dropbox faces of a host of additional challenges when it comes to search. It has more than 500 million users and hundreds of billions of documents, making finding the correct piece for a particular user even more difficult. The company had to take all of this into consideration when it was rebuilding its internal search engine.

One way for the search team to attack a problem of this scale was to put machine learning to bear on it, but it required more than an underlying level of intelligence to make this work. It also required completely rethinking the entire search tool from an architectural level.

That meant separating two main pieces of the system, indexing and serving. The indexing piece is crucial of course in any search engine. A system of this size and scope needs a fast indexing engine to cover the number of documents in a whirl of changing content. This is the piece that’s hidden behind the scenes. The serving side of the equation is what end users see when they query the search engine, and the system generates a set of results.

Nautilus Architecture Diagram: Dropbox

Dropbox described the indexing system in a blog post announcing the new search engine: “The role of the indexing pipeline is to process file and user activity, extract content and metadata out of it, and create a search index.” They added that the easiest way to index a corpus of documents would be to just keep checking and iterating, but that couldn’t keep up with a system this large and complex, especially one that is focused on a unique set of content for each user (or group of users in the business tool).

They account for that in a couple of ways. They create offline builds every few days, but they also watch as users interact with their content and try to learn from that. As that happens, Dropbox creates what it calls “index mutations,” which they merge with the running indexes from the offline builds to help provide ever more accurate results.

The indexing process has to take into account the textual content assuming it’s a document, but it also has to look at the underlying metadata as a clue to the content. They use this information to feed a retrieval engine, whose job is to find as many documents as it can, as fast it can and worry about accuracy later.

It has to make sure it checks all of the repositories. For instance, Dropbox Paper is a separate repository, so the answer could be found there. It also has to take into account the access-level security, only displaying content that the person querying has the right to access.

Once it has a set of possible results, it uses machine learning to pinpoint the correct content. “The ranking engine is powered by a [machine learning] model that outputs a score for each document based on a variety of signals. Some signals measure the relevance of the document to the query (e.g., BM25), while others measure the relevance of the document to the user at the current moment in time,” they explained in the blog post.

After the system has a list of potential candidates, it ranks them and displays the results for the end user in the search interface, but a lot of work goes into that from the moment the user types the query until it displays a set of potential files. This new system is designed to make that process as fast and accurate as possible.

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Dropbox drops some enhancements to Paper collaboration layer

When you’re primarily a storage company with enterprise aspirations, as Dropbox is, you need a layer to to help people use the content in your system beyond simple file sharing. That’s why Dropbox created Paper, to act as that missing collaboration layer. They announced some enhancements to Paper to keep people working in their collaboration tool without having to switch programs.

“Paper is Dropbox’s collaborative workspace for teams. It includes features where users can work together, assign owners to tasks with due dates and embed rich content like video, sound, photos from Youtube, SoundCloud, Pinterest and others,” a Dropbox spokesperson told TechCrunch.

With today’s enhancements you can paste a number of elements into Paper and get live previews. For starters, they are letting you link to a Dropbox folder in Paper, where you can view the files inside the folder, even navigating any sub-folders. When the documents in the folder change, Paper updates the preview automatically because the folder is actually a live link to the Dropbox folder. This one seems like a table stakes feature for a company like Dropbox.

Gif: Dropbox

In addition, Dropbox now supports Airtables, a kind of souped up spreadsheet. With the new enhancement, you just grab an Airtable embed code and drop it into Paper. From there, you can see a preview in whatever Airtable view you’ve saved the table.

Finally, Paper now supports LucidCharts. As with Airtables and folders, you simply paste the link and you can see a live preview inside Paper. If the original chart changes, updates are reflected automatically in the Paper preview.

By now, it’s clear that workers want to maintain focus and not be constantly switching between programs. It’s why Box created the recently announced Activity Stream and Recommended Apps. It’s why Slack has become so popular inside enterprises. These tools provide a way to share content from different enterprise apps without having to open a bunch of tabs or separate apps.

Dropbox Paper is also about giving workers a central place to do their work where you can pull live content previews from different apps without having to work in a bunch of content silos. Dropbox is trying to push that idea along for its enterprise customers with today’s enhancements.

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Microsoft will soon automatically transcribe video files in OneDrive for Office 365 subscribers

Microsoft today announced a couple of AI-centric updates for OneDrive and SharePoint users with an Office 365 subscription that bring more of the company’s machine learning smarts to its file storage services.

All of these features will launch at some point later this year. With the company’s Ignite conference in Orlando coming up next month, it’s probably a fair guess that we’ll see some of these updates make a reappearance there.

The highlight of these announcements is that starting later this year, both services will get automated transcription services for video and audio files. While video is great, it’s virtually impossible to find any information in these files without spending a lot of time. And once you’ve found it, you still have to transcribe it. Microsoft says this new service will handle the transcription automatically and then display the transcript as you’re watching the video. The service can handle over 320 file types, so chances are it’ll work with your files, too.

Other updates the company today announced include a new file view for OneDrive and Office.com that will recommend files to you by looking at what you’ve been working on lately across the Microsoft 365 and making an educated guess as to what you’ll likely want to work on now. Microsoft will also soon use a similar set of algorithms to prompt you to share files with your colleagues after you’ve just presented them in a meeting with PowerPoint, for example.

Power users will also soon see access statistics for any file in OneDrive and SharePoint.

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Storage provider Cloudian raises $94M

Cloudian, a company that specializes in helping businesses store petabytes of data, today announced that it has raised a $94 million Series E funding round. Investors in this round, which is one of the largest we have seen for a storage vendor, include Digital Alpha, Fidelity Eight Roads, Goldman Sachs, INCJ, JPIC (Japan Post Investment Corporation), NTT DOCOMO Ventures and WS Investments. This round includes a $25 million investment from Digital Alpha, which was first announced earlier this year.

With this, the seven-year-old company has now raised a total of $174 million.

As the company told me, it now has about 160 employees and 240 enterprise customers. Cloudian has found its sweet spot in managing the large video archives of entertainment companies, but its customers also include healthcare companies, automobile manufacturers and Formula One teams.

What’s important to stress here is that Cloudian’s focus is on on-premise storage, not cloud storage, though it does offer support for multi-cloud data management, as well. “Data tends to be most effectively used close to where it is created and close to where it’s being used,” Cloudian VP of worldwide sales Jon Ash told me. “That’s because of latency, because of network traffic. You can almost always get better performance, better control over your data if it is being stored close to where it’s being used.” He also noted that it’s often costly and complex to move that data elsewhere, especially when you’re talking about the large amounts of information that Cloudian’s customers need to manage.

Unsurprisingly, companies that have this much data now want to use it for machine learning, too, so Cloudian is starting to get into this space, as well. As Cloudian CEO and co-founder Michael Tso also told me, companies are now aware that the data they pull in, whether from IoT sensors, cameras or medical imaging devices, will only become more valuable over time as they try to train their models. If they decide to throw the data away, they run the risk of having nothing with which to train their models.

Cloudian plans to use the new funding to expand its global sales and marketing efforts and increase its engineering team. “We have to invest in engineering and our core technology, as well,” Tso noted. “We have to innovate in new areas like AI.”

As Ash also stressed, Cloudian’s business is really data management — not just storage. “Data is coming from everywhere and it’s going everywhere,” he said. “The old-school storage platforms that were siloed just don’t work anywhere.”

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Samsung’s official launch video for the Galaxy Note 9 has also now leaked…

The official launch promo video for Samsung’s next flagship smartphone in the long-running Galaxy Note line — the Note 9 — appears to have leaked, with links to the video now cropping up on YouTube.

And via Twitter…

Samsung accidentally posted its Galaxy Note 9 into video to YouTube. Oops. pic.twitter.com/NfzikY4tLG

— Tom Warren (@tomwarren) August 3, 2018

The forthcoming phablet has been pretty comprehensively leaked already. And clearly hasn’t had a radical (cosmetic nor form factor) makeover. (This is not the fabled folding phone Samsung is slated to be working on for next year.)

The Note 9 will also be officially unveiled on August 9. So Samsung fans don’t have long left to wait for any last minute details they were keen to nail down.

But, in the few days remaining, the Samsung-branded video offers a more polished look at what’s going to be up for pre-order next week…

Samsung kicks off touting the power of the Note 9 — telling us it’s not just powerful but “super powerful” (leaked benchmarks have previously suggested a big performance boost); and with a bottoms-up ports & rear view pan that shows a 3.5mm headphone jack sitting in the frame — confirming my TC colleague Brian Heater’s eagle eye.

Also of note: A repositioned fingerprint sensor (now in a less stupid location below the dual lens camera housing).

Next, the video flips focus to a snazzy yellow (or is that gold?) S Pen stylus, which Samsung describes as “all new powerful”, before showing its physical button being pressed by an invisible force (human, we hope) which then does a spot of aimless doodling.

After this, Samsung moves to brag about the Note 9’s “all day battery” (which it’s confidently teased before — so the company looks to have put the Note 7 battery fiasco well and truly behind it), although the usual small print disclaimers warn about variable battery performance.

On the storage front, there’s a big bold claim of the device being “1 terabyte ready” — although this is on account of a 512GB SD card shown being pulled out of the expandable memory slot.

And in the small print displayed on the video at that point the company caveats that the 1TB claim is for 512GB models equipped with another 512GB in expandable memory (at the owner’s separate expense).

“The power to store more” [photos] “Delete less” [photos] is what the company’s marketing team has come up with to try to excite people over the utility of owning a smartphone that can have 1TB in storage capacity. i.e. if you stump up extra for the extra storage.

The video shows a camera roll chock-full of stock photos of pets, snacks and people. Hopefully Note 9 owners will find more creative things to do with 1TB storage.

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Google launches a standalone version of Drive for businesses that don’t want the full G Suite

If you are a business and want to use Google Drive, then your only option until now was to buy a full G Suite subscription, even if you don’t want or need access to the rest of the company’s productivity tools. Starting today, though, these businesses will be able to buy a subscription to a standalone version of Google Drive, too.

Google says that a standalone version of Drive has been at the top of the list of requests from prospective customers, so it’s now giving this option to them in the form of this new service (though to be honest, I’m not sure how much demand there really is for this product). Standalone Google Drive will come with all the usual online storage and sharing features as the G Suite version.

Pricing will be based on usage. Google will charge $8 per month per active user and $0.04 per GB stored in a company’s Drive.

Google’s idea here is surely to convert those standalone Drive users to full G Suite users over time, but it’s also an acknowledgement on Google’s part that not every business is ready to move away from legacy email tools and desktop-based productivity applications like Word and Excel just yet (and that its online productivity suite may not be right for all of those businesses, too).

Drive, by the way, is going to hit a billion users this week, Google keeps saying. I guess I appreciate that they don’t want to jump the gun and are actually waiting for that to happen instead of just announcing it now when it’s convenient. Once it does, though, it’ll become the company’s eighth product with more than a billion users.

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With Cloud Filestore, the Google Cloud gets a new storage option

Google is giving developers a new storage option in its cloud. Cloud Filestore, which will launch into beta next month, essentially offers a fully managed network attached storage (NAS) service in the cloud. This means that companies can now easily run applications that need a traditional file system interface on the Google Cloud Platform.

Traditionally, developers who wanted access to a standard file system over the kind of object storage and database options that Google already offered had to rig up a file server with a persistent disk. Filestore does away with all of this and simply allows Google Cloud users to spin up storage as needed.

The promise of Filestore is that it offers high throughput, low latency and high IOPS. The service will come in two tiers: premium and standard. The premium tier will cost $0.30 per GB and month and promises a throughput speed of 700 MB/s and 30,000 IOPS, no matter the storage capacity. Standard-tier Filestore storage will cost $0.20 per GB and month, but performance scales with capacity and doesn’t hit peak performance until you store more than 10TB of data in Filestore.

Google launched Filestore at an event in Los Angeles that mostly focused on the entertainment and media industry. There are plenty of enterprise applications in those verticals that need a shared file system, but the same can be said for many other industries that rely on similar enterprise applications.

The Filestore beta will launch next month. Because it’s still in beta, Google isn’t making any uptime promises right now and there is no ETA for when the service will come out of beta.

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SoftBank Vision Fund leads $250M Series D for Cohesity’s hyperconverged data platform

San Jose-based Cohesity has closed an oversubscribed $250M Series D funding round led by SoftBank’s Vision Fund, bringing its total raised to date to $410M. The enterprise software company offers a hyperconverged data platform for storing and managing all the secondary data created outside of production apps.

In a press release today it notes this is only the second time SoftBank’s gigantic Vision Fund has invested in an enterprise software company. The fund, which is almost $100BN in size — without factoring in all the planned sequels, also led an investment in enterprise messaging company Slack back in September 2017 (also a $250M round).

Cohesity pioneered hyperconverged secondary storage as a first stepping stone on the path to a much larger transformation of enterprise infrastructure spanning public and private clouds. We believe that Cohesity’s web-scale Google-like approach, cloud-native architecture, and incredible simplicity is changing the business of IT in a fundamental way,” said Deep Nishar, senior managing partner at SoftBank Investment Advisers, in a supporting statement.

Also participating in the financing are Cohesity’s existing strategic investors Cisco Investments, Hewlett Packard Enterprise (HPE), and Morgan Stanley Expansion Capital, along with early investor Sequoia Capital and others.

The company says the investment will be put towards “large-scale global expansion” by selling more enterprises on the claimed cost and operational savings from consolidating multiple separate point solutions onto its hyperconverged platform. On the customer acquisition front it flags up support from its strategic investors, Cisco and HPE, to help it reach more enterprises.

Cohesity says it’s onboarded more than 200 new enterprise customers in the last two quarters — including Air Bud Entertainment, AutoNation, BC Oil and Gas Commission, Bungie, Harris Teeter, Hyatt, Kelly Services, LendingClub, Piedmont Healthcare, Schneider Electric, the San Francisco Giants, TCF Bank, the U.S. Department of Energy, the U.S. Air Force, and WestLotto — and says annual revenues grew 600% between 2016 and 2017.

In another supporting statement, CEO and founder Mohit Aron, added: “My vision has always been to provide enterprises with cloud-like simplicity for their many fragmented applications and data — backup, test and development, analytics, and more.

“Cohesity has built significant momentum and market share during the last 12 months and we are just getting started.”

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AWS launches a cheaper single-zone version of its S3 storage service

AWS’ S3 storage service today launched a cheaper option for keeping data in the cloud — as long as developers are willing to give up a few 9s of availability in return for saving up to 20 percent compared to the standard S3 price for applications that need infrequent access. The name for this new S3 tier: S3 One Zone-Infrequent Access.

S3 was among the first services AWS offered. Over the years, the company added a few additional tiers to the standard storage service. There’s the S3 Standard tier with the promise of 99.999999999 percent durability and 99.99 percent availability and S3 Standard-Infrequent Access with the same durability promise and 99.9 percent availability. There’s also Glacier for cold storage.

Data stored in the Standard and Standard-Infrequent access tiers is replicated across three or more availability zones. As the name implies, the main difference between those and the One Zone-Infrequent Access tier is that with this cheaper option, all the data sits in only one availability zone. It’s still replicated across different machines, but if that zone goes down (or is destroyed), you can’t access your data.

Because of this, AWS only promises 99.5 percent availability and only offers a 99 percent SLA. In terms of features and durability, though, there’s no difference between this tier and the other S3 tiers.

As Amazon CTO Werner Vogels noted in a keynote at the AWS Summit in San Francisco today, it’s the replication across availability zones that defines the storage cost. In his view, this new service should be used for data that is infrequently accessed but can be replicated.

An availability of 99.5 percent does mean that you should expect to experience a day or two per year where you can’t access your data, though. For some applications, that’s perfectly acceptable, and Vogels noted that he expects AWS customers to use this for secondary backup copies or for storing media files that can be replicated.

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