Virtustream lands $40M from SAP to build out its enterprise cloud

Enterprise cloud specialist Virtustream just netted $40 million in Series D funding from enterprise software leader SAP(s sap). The cash brings total investment in the Washington D.C.-based vendor to about $120 million and will help Virtustream scale out its infrastructure.

VIrtustream fields two architectural cloud platforms — one is based on VMware(s vmw) vCenter and ESX and the other is the KVM-based Elastic Computing Platform (ECP) that came out of Virtustream’s acquisition of Enomaly two years ago. Virtustream is working to migrate the ECP option over to OpenStack in the next few years., a migration that the new money will help power.

Virtustream CEO Rodney Rogers.

Virtustream CEO Rodney Rogers.

“Our goal is to offer the same services and service level agreement (SLA) atop VMware or Openstack architecture — you choose,” said Rodney Rogers, CEO of Virtustream.

The companies’ pairing makes sense. Virtustream and SAP are already partners and Virtustream, born in the cloud, can help SAP better negotiate the tricky job of moving more from its on-premise legacy to the cloud. Virtustream, which typically competes with CSC(s csc), CenturyLink/Savvis(s ctl) and Verizon/Terremark(s vz) — with Amazon Web Services on the horizon — sports such enterprise customers as Estee Lauder(s el) and Domino Foods.

SAP, a traditional IT player and leader in ERP software, accelerated that cloud shift with its $3.4 billion acquisition of SuccessFactors in 2011 and its push to put its HANA analytics database in the cloud. Virtustream, founded by execs with systems integration experience, fits nicely with SAP, since nothing screams for integration chops like enterprise software. As part of this investment, SAP also gets a board advisory seat at Virtustream — so look for more collaboration to come.