Alert Logic, a Houston, Texas based provider of Security-as-a-Service solutions, today announced that it has closed a $12.6 million Series E financing.
Alert Logic plans to use the proceeds of the recent financing to scale out its business model of delivering Security-as-a-Service solutions through a strategic channel of service provider partners. The company says it plans to broaden its product and service portfolio and improve its existing Software-as-a-Service and Managed Security Service capabilities by investing in all aspects of the business, ranging from sales and marketing, to engineering and product development, as well as business development and strategic alliances.
Alert Logic’s Security-as-a-Service business model combines security software products purpose-built to be delivered as-a-service, along with integrated managed services providing 24×7 monitoring, alerting, and guidance from certified security analysts. This model allows customers to achieve their security and compliance goals without the cost and complexity associated with traditional SIEM or MSSP solutions.
“After doubling the size of our company in less than two years and building a customer base of over 1,200 customers representing $20 million in annual recurring revenue, it is clear our business model works,” said Gray Hall, president and CEO at Alert Logic. “Our customers and partners are telling us that our current SaaS delivery model and service provider channel gives us an ideal foundation on which to build more Security-as-a-Service solutions and drive these solutions through the rapidly growing hosting/cloud market.”
The funding round was led by existing investors Updata Partners, Covera Ventures, DFJ Mercury, and Access Venture Partners, along with several members of the company’s management team.