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Netris Secures $15M Series A from a16z to Accelerate AI Neocloud Launches

racks of GPUs (graphics processing units) with a closed-loop liquid cooling system are seen inside an operational Microsoft data centre in Karawang, West Java.

Image Credits:YASUYOSHI CHIBA/AFP / Getty Images

The Data Center Challenge in the Age of AI

The explosion of interest in artificial intelligence has led many aspiring entrepreneurs to venture into the data center business. However, establishing a data center can be a daunting task.

The Complexity of Setting Up a Data Center

Securing vital components such as GPUs, network switches, and storage is just the tip of the iceberg. Beyond acquisition, there’s a significant amount of work involved in configuring and launching the data center to meet diverse customer needs. Getting a facility ready to offer cloud-computing services, specifically for AI inference and training, can span several months. Delays in going to market can be financially crippling, especially when costly GPUs remain inactive.

Netris: Streamlining Data Center Operations

Netris, a network automation startup, claims to address these challenges for neocloud operators. Their solution features software that seamlessly operates on network switches, coupled with a platform that simplifies the setup, configuration, and management processes. By automating these tasks, Netris aims to significantly reduce the time taken for neoclouds to go live, enabling quicker access to cloud services.

Their innovative platform also provides network abstraction, allowing flexible changes to hardware configurations as needed. Moreover, it isolates servers and resources at the hardware level, which supports multi-tenancy—an essential feature for serving multiple customers simultaneously.

An Obvious Yet Overlooked Solution

Until recently, the data center landscape was primarily navigated by large infrastructure corporations like Equinix, Oracle, and AWS. These industry giants have effectively optimized network setups and configurations through extensive engineering resources or proprietary automation solutions. On the other hand, smaller neocloud businesses typically lack the manpower and financial resources to replicate these capabilities.

According to Netris CEO Alex Saroyan, “As a GPU cluster operator, configuration changes are necessary daily. Traditional data centers relied on Software-Defined Networking (SDN) to manage these changes, but SDN has its limitations as a software-based solution.” Saroyan points out that for AI applications, the high volume of data traffic necessitates hardware acceleration to maintain efficiency. “You require something akin to SDN, but completely hardware accelerated. This is our specialization, and we’ve been refining this for eight years,” he adds.

Vendor-Agnostic Solutions

Netris promotes itself as a vendor-agnostic platform, compatible with various networking equipment and standards found in data centers, accommodating both Nvidia and AMD servers. This versatility has garnered interest from influential players in the tech industry, including Nvidia. After witnessing a demonstration of Netris’ technology, Nvidia recommended the startup to several customers, leading to significant traction.

Currently, Netris operates in over 35 GPU clusters globally, managing around one million GPUs. Their clients include notable firms like Foxconn, Visionbay, Hewlett Packard Enterprise, and TensorWave.

Recent Funding and Future Plans

In light of their growing success, Netris has recently secured $15 million in a Series A funding round led by Andreessen Horowitz. The influx of capital will enable the company to expand its engineering and sales teams, broaden its support for additional hardware vendors, and enhance its operational algorithms.

While AI plays a prevalent role in many tech solutions, Netris operates without it. “Our algorithms for automation were in development long before AI became prominent,” Saroyan reveals. “AI lacks determinism; it sometimes takes unexpected directions. While it excels in creative tasks, managing thousands of switch configurations demands precision and consistency.”

Conclusion

As the AI revolution continues to gain momentum, the demand for efficient, user-friendly data center solutions will only increase. Netris stands out by offering a robust platform tailored for neocloud operators, helping them swiftly navigate the complexities of establishing a data center. By eliminating the numerous operational hurdles, Netris not only accelerates time-to-market but also improves the overall efficiency of data center operations.

With the backing of secure funding and an innovative approach to network management, Netris is poised to make significant strides in an industry that is essential for the future of AI and cloud computing.

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