Replicated, Raises $25M Series B to Modernize On-Prem Software Delivery

Replicated, Raises $25M Series B to Modernize On-Prem Software Delivery

Replicated,​ which enables software vendors to ship an on-prem, air-gapped, or self-hosted version of their software with Day 2 enterprise operations management, today announced closing a Series B funding round totaling $25 million. The round was led by Two Sigma Ventures, with participation from existing investors. The total amount raised to date, including a $1.5 million seed round (led by BoldStart) and a $5 million Series A round (led by Amplify), is $31.5 million.  The funds will be used to expand the capabilities of the current product and grow the team.

“The on-prem software market is four times larger than the SaaS market,” said Grant Miller, Replicated co-founder and CEO. “Replicated lets software vendors unlock the opportunity of the on-prem software category with lower engineering overhead and faster time to market. This is a market change made possible by the convergence of cloud-native computing and Kubernetes.”

Replicated enables software vendors to use modern cloud-native technologies and Kubernetes to deliver enterprise-grade applications and install their software in on-prem or self-hosted environments. The technology reduces the engineering workload and accelerates time to market for software vendors. For enterprise customers, Replicated provides a simple interface to manage software deployments, licensing, and Day 2 operations. Replicated’s customers include HashiCorp, Puppet, and UiPath. Half of the Fortune 100 uses Replicated to manage applications.

According to Synergy Research, the on-prem software market is four times greater than that of the SaaS market. The on-prem market was inaccessible to many software vendors because engineering costs and long lead times made it impractical. Replicated has helped dozens of software vendors and thousands of enterprise organizations benefit from faster and easier deployments and simplified application management.

Replicated was the first company to deliver a container-based service for the deployment of applications inside corporate firewalls.​Kubernetes has become the substrate of how modern software is delivered and makes widespread delivery of software to on-prem environments possible.​Replicated’s Kubernetes Off The Shelf (KOTS) product,​is a kubectl plugin and admin console to help manage KOTS software.

Traditional on-prem software deployments required software vendors to spend months packaging and delivering applications on disks or servers to the customer. It was hard to build reliable, scalable, and distributed systems. The software was received by operations technicians who had to pour over manuals for days to deploy, update, and maintain every service.

Replicated reduces the engineering overhead from months to days and accelerates time to market,​streamlining Day 1 and Day 2 operations so that a single person can manage 10,000 applications.

“Replicated makes it easy to reliably deliver our AI platform to highly-secure customer environments, without needing our customers to become experts on our stack or architecture,” said Kyle Owens, Labelbox Engineering Manager.

Replicated’s Series B round was well subscribed due to company and category growth, attracting the participation of Two Sigma Ventures as well as existing investors. Replicated has more than doubled its customer base in the past 12 months. Replicated’s customers cite easier access to large enterprise accounts as the primary reason for adopting the technology.

“Replicated has pioneered the way to operationalize and scale the distribution of modern on‑prem applications to enterprise customers,” said Villi Iltchev, Two Sigma Ventures partner. “Their technology makes on-prem or self-hosted software deployments fast, seamless, and easy to manage in an era where companies are increasingly deploying applications in their cloud and on-prem environments.”

Replicated​was founded in 2015 by Miller and Marc Campbell, CTO, who previously founded Look IO, a mobile live-chat program that was acquired by LivePerson. is a digital lifestyle publication that covers the culture of startups and technology companies in Los Angeles. It is the go-to site for people who want to keep up with what matters in Los Angeles’ tech and startups from those who know the city best.

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