CloudVelocity gets $5M to move biz apps to public clouds

Startup CloudVelocity is emerging from stealth mode with a big, ambitious vision. Founded by several former NeoPath Networks and Sun Microsystems engineers, the company claims its technology will move existing enterprise applications — without modification — into a public cloud and run them there securely and without performance degradation.

Rajeev Chawla, CEO of CloudVelocity

Rajeev Chawla, CEO of CloudVelocity

That is such a huge promise, that the first word that came to mind when Mayfield Fund Managing Director Navin Chaddha told me about the company’s plans was: “Magic!” The biggest remaining obstacle to broad scale cloud adoption — especially by companies in the financial services and other heavily regulated industries — is the fear of putting data onto a public cloud. Big banks do not even let their developers put sandboxes on Amazon(s amzn) for this reason.

If these companies could be persuaded that the public cloud is safe and efficient for their workloads, all bets are off on deployment.

Mayfield Fund is funding CloudVelocity to the tune of $5 million in Series A money so Chadda, not surprisingly, is bullish on its prospects.

The company’s hybrid cloud automation software basically clones private applications on public infrastructure like Amazon(s amzn) Web Services, he said.  “It makes public clouds look like a seamless extension of the enterprise data center,” Chaddha told me. “If you have multi-tier applications running in your own data center, you download this software and it moves these applications to any public cloud.” He added that the initial resease will support AWS, with other clouds to be named later.

The software is already in use by select beta customers, he said.

Santa Clara, Calif.-based CloudVelocity, which up till now was known as Denali Systems, was co-founded by CEO Rajeev Chawla and Anand Iyenger, Panos Tsirigotis, and Raman Chawla. Rajeev Chawla was founder and chairman of NeoPath Networks, a file storage management company acquired by Cisco Systems (s csc0) in 2006. Before that he founded Ingrian Networks, a data privacy specialist, which was acquired by SafeNet.

Chaddha acknowledged my skepticism but stuck to his guns. “This is a very hard problem and to do it you have to understand security, you have to understand server virtualization, you have to understand networking and you have to understand storage. CloudVelocity understands all of that.”