• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
TechPointCloud

Startup Velostrata talks up a new take on hybrid cloud

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
August 26, 2015, 7:53 AM ET
Velostrata

Velostrata, a till-now stealthy startup, is starting to talk about its plan to make hybrid clouds—which mix private and shared public cloud infrastructure—faster and more efficient. As part of its coming-out party, the company says it has $14 million in Series A funding from Norwest Venture Partners and Greylock Partners to fund sales and marketing expansion and to add to its product roadmap.

The startup’s secret sauce is technology that, in theory, will let companies keep the bulk of their data in-house, in private cloud or data centers controlled by them, and just offload, or stream, the compute portion of their workloads to the public cloud of choice.

“We have evolved our technology to enable enterprise customers to stream compute workloads from on-premises directly to a public cloud,” Velostrata CEO and co-founder Issy Ben-Shaul told Fortune.

“By streaming, I don’t mean we move all the data, we stream only what is needed—maybe a boot image—to perform the necessary calculations. The rest of your data stays put. We reduce the amount of data that goes in and out [of the public cloud.] Other solutions replicate the whole image to cloud AMIs and boot them all up.”

AMIs refers to Amazon (AMZN) Machine Images, the tech term for a unit of work running on Amazon’s Elastic Compute Cloud (EC2] rentable computing service.

Ben-Shaul is an industry veteran who spent time at VMware(VMW), via that company’s acquisition of Wanova, a desktop virtualization company he co-founded. Before that he was CTO of Cisco’s (CSCO) application delivery business. Velostrata’s co-founder and chief product officerAdy Degany came was formerly principal program manager for Microsoft’s Server & Cloud division, which he joined via Microsoft’s acquisition of StorSimple. Before that he was vice president of product management for Wanova.

Initially, Velostrata will support loads flowing into Amazon Web Services, with plans to add Microsoft (MSFT) Azure and other public clouds soon thereafter.

This is an intriguing idea since one of the knocks on public clouds is that, while compute and storage may be very inexpensive, the cost of pumping data out of the public cloud back into the company’s own servers or to another cloud can be quite pricey. That cost is motivating a lot of startups, including ClearSky Data. Their motivation is to keep important, active storage close to their own users.

If this works as advertised, companies can minimize their investment in on-site hardware to just what they really need and then use public cloud for workload spikes or specialized loads. An advertising or media company, for example, could burst a graphics-intense job up to Amazon to make use of that clouds specialized Graphical Processing Units, for example.

Just Energy, a Toronto-based energy reseller, is trying out Velostrata as a way to reduce its disaster recovery (DR) costs. “Our DR sites tend to sit there and do nothing for 95% or 98% of the their existence, but they need to be there,” said Troy Jennings, infrastructure team leader. Velostrata will let us have our storage footprint here and then a small compute footprint for running virtual machines in the public cloud as needed,” he said.

Colm Keegan, senior analyst at Enterprise Strategy Group, said technologies like this could help big customers cut cloud costs and allay concerns about vendor lock-in at the cloud level. “One challenge is the notion that once our data is in the cloud, we’re pretty stuck. It’s hard to port that data over from Amazon to Google,” he noted. “That sort of job takes time and costs money and you have to provision bandwidth.”

He added that other companies are attacking this notion as well. One of the proposed benefits of Cisco’s Intercloud scenario of interconnected clouds running Cisco software-defined networking gear is that it too, will “solve for the problem of vendor lock-in,” he noted.

For more on public cloud, check out the video below.

Subscribe to Data Sheet, Fortune’s daily newsletter on the business of technology.

 

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

bofa
AIProductivity
BofA says you’ll be 10x more productive with AI. Ignore the 0.1% result so far
By Nick LichtenbergMay 24, 2026
20 minutes ago
Inside the ‘stealth wealth’ playbook: How Silicon Valley’s elite buy multimillion-dollar mansions without leaving a paper trail
Real EstateLuxury
Inside the ‘stealth wealth’ playbook: How Silicon Valley’s elite buy multimillion-dollar mansions without leaving a paper trail
By Sydney LakeMay 24, 2026
54 minutes ago
David Bennahum
CommentaryMedia
I was one of the internet’s first influencers. AI just killed the whole category — and created something better
By David S. BennahumMay 24, 2026
2 hours ago
Someone leafs through titles stacked in a library
AIResearch
AI hallucinations are infiltrating expert work—and entering the permanent body of knowledge
By Tristan BoveMay 24, 2026
3 hours ago
Marc Perry, Toyota Alabama president and Jack Crowley in the lab with the students.
AIJobs
As AI wipes out white-collar jobs, one Alabama high school and Toyota are training students for roles that pay $40 an hour and can’t be automated
By Jake AngeloMay 24, 2026
4 hours ago
It took over a decade, but NextDecade’s longshot bet to lead Texas LNG is finally paying off
EnergyLNG
It took over a decade, but NextDecade’s longshot bet to lead Texas LNG is finally paying off
By Jordan BlumMay 24, 2026
5 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
3 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
2 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
2 days ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
2 days ago
Elon Musk's SpaceX IPO filing just told us what business he's betting on for the future—and it's not rockets
Investing
Elon Musk's SpaceX IPO filing just told us what business he's betting on for the future—and it's not rockets
By Shawn TullyMay 23, 2026
1 day ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
7 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.