JumpCloud Raises $ 159 Million to Help Manage Users and Devices
JumpCloud has closed its Series F cycle and posted a valuation of $ 2.56 billion to add additional capacity to its directory platform and drive sales from its channels.
The Louisville, Colo.-Based company plans to use the money to expand its cloud directory platform beyond basic identity features like single sign-on, device management, l ‘multi-factor authentication, identity governance and administration and privileged access management, according to the CEO. Rajat Bhargava. JumpCloud also wants to leverage its base of more than 1,200 MSP partners to reach more SMB customers.
“There is such a great opportunity for our channel partners to shift away from a device-centric model to a user-centric model,” Bhargava told CRN. JumpCloud’s $ 159 million funding round was led by venture capital firm Sapphire Ventures and comes just eight months after the company completed a $ 100 million Series E funding round led by BlackRock Innovation Capital.
[Related: Identity Firm JumpCloud Raises $75M To Boost Ties With MSPs]
JumpCloud now makes between 15-20% of its sales through the channel, and Bhargava said he would like to see about half of the company’s business go through long-term solution providers. The company mainly sells to customers with between 50 and 5,000 seats, and those without an internal IT function almost always prefer to source their products through an MSP, he said.
The company has invested in features like a multi-tenant portal that make it easier for MSPs to manage their JumpCloud customers, Bhargava said. JumpCloud plans to use the F-Series funding to invest in more technical and sales staff for solution providers as well as marketing resources around content and partner activation, Bhargava said. The company has customers in more than 100 countries, he said.
“For us to be successful in this market, we basically have to be very close to PSMs,” Bhargava said.
From a technology perspective, Bhargava said that JumpCloud is looking to invest in capabilities that allow users to easily and securely access the computing resources they need both on-premises and in the cloud. Although JumpCloud has not made any acquisitions since its founding nine years ago, Bhargava expects mergers and acquisitions to be part of the company’s feature expansion strategy going forward.
“The cloud-based directory platform that we are building will encompass all of those ancillary categories that existed as point solutions that organizations had to purchase in addition to [Microsoft] Active Directory, ”Bhargava said. “We are trying to [consolidate] this stack of solutions in one platform.
One of the main advantages of JumpCloud over its directory service competitors is that it can support Windows, Mac, and Linux deployments in both the cloud or on-premises, as well as Google Workspace, Microsoft 365 and Amazon Web Services collaboration. JumpCloud also secures connections to devices and servers rather than focusing only on connections to web applications, he said.
From a metrics perspective, Bhargava said JumpCloud primarily focuses on annual recurring revenue growth (ARR) as well as net revenue retention (NRR). NRR reports whether customers like JumpCloud’s product and see the company as a long-term partner in following their growth with the company, according to Bhargava.
“Over the years, we have had an incredible chance to build a great business and we want to continue to do so,” Bhargava said. “Being able to get that kind of information out will hopefully send the message that we’re here for the long haul.”
Macktez started using JumpCloud five years ago to perform RADIUS authentication against Google Apps, and was impressed with the company’s ability to work across multiple operating systems and in remote-centric environments, said technical director Reilly Schull. JumpCloud has everything from authenticating local devices and managing mobile devices to managing encryption keys and syncing passwords, he said.
Because of its integrations, Schull said Macktez customers see the exact same JumpCloud start page whether they sign in to Microsoft, Google, or Apple.
“It’s an extremely unified experience with an extremely useful feature set,” said Schull.
Going forward, Schull said he would like to see JumpCloud increase its lead in mobile device management and develop increased integrations with Microsoft to bring group management to the same level as for Google and Amazon. As JumpCloud moves upmarket, Schull said he will meet more customers using Microsoft services, making increased collaboration with Microsoft critical in the long run.
“If people aren’t familiar with JumpCloud, they really should try it,” Schull said. “It’s a very good product.”