(gigaom.com) -- In 2010, the founders of Midokura set out to become the top provider of public Infrastructure as a Service (IaaS) clouds in Japan, but they realized networking challenges stood in the way. So they decided to focus on networking, and in the meantime the software-defined networking (SDN) space got hot. Now Midokura is trying to rack up more large-scale customers, particularly existing IaaS clouds, to validate its software’s capabilities.
Toward that end, the company has secured $17.3 million in Series A funding, bringing the total the company has raised to $18.6 million. The Innovation Network Corporation of Japan led the round, which also included participation from NEC Capital Solutions and NTT Docomo Innovations Ventures.
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Midokura’s software virtualizes the network to let OpenStack cloud-management software rapidly create virtual networks and manage virtual routing and switching. Unlike some SDN startups, Midokura’s software does not use the OpenFlow networking protocol. Midokura executives see Nicira as a major competitor, and to a lesser extent Big Switch, even though those companies incorporate OpenFlow in varying degrees. Since releasing a beta version of its overlay in October, the company has found a customer in one large unnamed technology company in the United States, said Midokura’s chief strategy officer, Ben Cherian.
Midokura executives are changing roles. Dan Mihai Dumitriu, chief technology officer and a co-founder, is becoming CEO, while the CEO until this point, co-founder Tatsuya Kato, is becoming board chairman.
Midokura has managed to develop a product and take on venture funding after realizing its IaaS dreams weren’t going to pan out — not immediately, anyway — and changing course. Now, with Microsoft, Rackspace and especially Amazon becoming larger IaaS providers, the move looks like a good one. If Midokura can sign up a few IaaS customers, it could capture a foothold in the SDN market, which does not yet have clear leaders.
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