Arrcus said the investment will enable the firm to accelerate growth and expand market reach
Networking software company Arrcus announced a new investment from Hitachi Ventures for an additional closing of its Series D.
Arrcus said this new investment will enable the company to accelerate its growth, expand market reach and continue delivering its networking solutions to customers worldwide.
The value of the investment was not disclosed.
Hitachi Ventures is the corporate venture capital arm of Japanese company Hitachi. The firm invests in early-stage and growth-stage technology companies. Hitachi Ventures’ investment areas span artificial intelligence, cloud computing, storage and networking and robotics, among other segments.
“The global market for routing and switching across enterprise, cloud, and telco is extremely large, of the order of $80 billion. A significant part of this is up for refresh due to cycles like the requirements of AI, move to 400G Ethernet, 5G, need for multi-cloud networking as well as low latency edge computing. Arrcus’ solutions for routing and switching have been created in a flexible, software-defined architecture presenting customers with a superior alternative to existing legacy networking vendors – tackling use cases across industries, and supporting routing and switching applications,” Shekar Ayyar, chairman and CEO of Arrcus, told RCR Wireless News.
The executive noted that Arrcus has also worked to ensure interoperability in brownfield environments, resulting in an immediately addressable market for Arrcus of over $10 billion.
Commenting about the general outlook for the rest of 2023, Ayyar said it remains strong as customers are moving forward in their evaluation and purchase cycles for Arrcus. “These include prominent names in cloud, enterprise as well as service provider domains and some of the largest market cap companies in the world. Even as the macro market seems somewhat sluggish, our customers are eager to move ahead and excited to see us deliver on the value propositions of cost reduction, performance, combined with improved speed to market with new network functions and services.”
In a blog about its investment in Arrcus, the Hitachi Ventures team stated: “We believe that Arrcus’ innovative solution combined with a strong team with proven execution capabilities and market traction make it a compelling investment opportunity in the rapidly evolving networking industry. With the increasing adoption of Arrcus routing and switching solutions by Fortune 500 and Global 2000 customers, Arrcus and Hitachi Ventures are excited about the future potential of this technology.”
Hitachi Ventures also noted that Arrcus Connected Edge (ACE) platform is fully programmable, allowing for automated deployment and management of network services delivering massive scale and high performance for flexible and secure multi-cloud connectivity along with features like traffic engineering and telemetry.
“We believe Arrcus has achieved an inflection point in 2022 and is set to continue its growth in 2023 and beyond. The company serves enterprises in various industry verticals, including telcos or communication services, cloud providers and enterprises. This strong performance indicates the market’s confidence in Arrcus’ product capability to capture the growing demand for next-generation networking solutions,” Hitachi Ventures added.
