Enterprise

This Man Left A Powerful Job At VMware To Launch A Cool New Startup With $27 Million In Funding

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PernixData Satyam Vaghani
PernixData co-founder Satyam Vaghani  Satyam Vaghani

Take one of VMware's most powerful executives, Satyam Vaghani, and put him together with his former grad-school buddy, Poojan Kumar, the engineer that created Oracle's super important product, Exadata.

The result is PernixData, a Valley startup that's turning the storage industry on its head.

Enterprise storage is a hot market these days. In 2013, venture capitalists poured $1.2 billion into startups that challenge market leaders like EMC and NetApp, ComputerWeekly reports.

That's because companies are storing more data than ever before and traditional enterprise storage systems are extremely expensive, with price tags that can run $50,000 to $2 million, Vaghani tells Business Insider.

New technologies based on flash memory, the kind of storage found in smartphones and thumb drives, are driving down costs. But most startups are building systems that replace existing storage products.

PernixData created software that combines with flash storage to instantly improve the storage company a already owns. Instead of buying more, the storage they have gets faster, better.

Vaghani cut his teeth at VMware, joining in 2002 as employee No. 100-ish, his first job out of grad school. Those were the days when VMware was still run by co-founder Diane Greene, who he describes as "like an Audi, quiet sophistication" and so humble, she flew economy on business trips.

"She was probably the best CEO an engineer could have. She loved her engineers. She expected engineers to just do magic, in return they loved her back," he says.

She gave Vaghani the nod to work on an experimental storage project, which became the file system, VMFS, one of the biggest in use today.

That led to other storage projects and his role as VMware storage CTO. Storage giant EMC grew so nervous by these projects, it acquired a controlling interest in 2003 for about $635 million.

After 10 years at VMware, Vaghani says leaving the company was hard. It was "a big risk for my career. I was a leader in storage, and I was giving that up. Did I make the right decision? We’ll see," he told Business Insider.

But the signs are looking good for PernixData so far.

One year after coming out of stealth, PernixData has some huge customers, a partnership with VMware and $27 million in funding from venture investors. It's backed by Kleiner Perkins, Lightspeed, and big storage angel investor Mark Leslie, founder of Veritas Software, (bought by Symantec in 2004 for about $$13.5 billion).

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.