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Cloud security company Zscaler attracts $38 million in funding

Cloud-security provider Zscaler Thursday announced it has received $38 million in venture-capital funding, naming Lightspeed Ventures as a strategic investor but not the other venture-capital partners involved in the round.

RELATED: vCloud vs. vSphere: VMWare explains security changes

Until now, San Jose, Calif.-based Zscaler, founded by its CEO Jay Chaudhry in 2008, has been entirely funded through internal investment. Chaudhry said today that although the company in the past had "resisted outside investment," the decision was made to accept the $38 million in capital in order to expand the company's sales and marketing and further develop its cloud security offerings, putting an emphasis on mobility.

Zscaler says it today has over 100 data centers worldwide and processes 5 billion transactions a day related to cloud security for more than 2,500 global enterprises, including 8 million users in 160 countries, in services that don't require specialized hardware or software.

The announcement comes on the heels of Mocana, a mobile security player, announcing $25 million in funding. 

Ellen Messmer is senior editor at Network World, an IDG publication and website, where she covers news and technology trends related to information security. Twitter: MessmerE. E-mail: emessmer@nww.com.

Read more about wide area network in Network World's Wide Area Network section.


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