Archives

exit

Harness makes first acquisition, snagging open source CI company Drone.io

Harness has made a name for itself creating tools like continuous delivery (CD) for software engineers to give them the kind of power that has been traditionally reserved for companies with large engineering teams like Google, Facebook and Netflix. Today, the company announced it has acquired Drone.io, an open source continuous integration (CI) company, marking the company’s first steps into open source, as well as its first acquisition.

The companies did not share the purchase price.

“Drone is a continuous integration software. It helps developers to continuously build, test and deploy their code. The project was started in 2012, and it was the first cloud native, container native continuous integration solution on the market, and we open sourced it,” company co- founder Brad Rydzewski told TechCrunch.

Drone delivers pipeline configuration information as code in a Docker container. Image: Drone.io

While Harness had previously lacked a CI tool to go with its continuous delivery tooling, founder and CEO Jyoti Bansal said this was less about filling in a hole than expanding the current platform.

“I would call it an expansion of our vision and where we were going. As you and I have talked in the past, the mission of Harness is to be a next generation software delivery platform for everyone,” he said. He added that buying Drone had a lot of upside.”It’s all of those things — the size of the open source community, the simplicity of the product — and it [made sense], for Harness and Drone to come together and bring this integrated CI/CD to the market.”

While this is Harness’ first foray into open source, Bansal says it’s just the starting point and they want to embrace open source as a company moving forward. “We are committed togetting more and more involved in open source and actually making even more parts of Harness, our original products, open source over time as well,” he said.

For Drone community members who might be concerned about the acquisition, Bansal said he was “100% committed” to continuing to support the open source Drone product. In fact, Rydzewski said he wanted to team with Harness because he felt he could do so much more with them than he could have done continuing as a stand-alone company.

“Drone was a growing community, a growing project and a growing business. It really came down to I think the timing being right and wanting to partner with a company like Harness to build the future. Drone laid a lot of the groundwork, but it’s a matter of taking it to the next level,” he said.

Bansal says that Harness intends to also offer a commercial version of Drone with some enterprise features on the Harness platform, even while continuing to support the open source side of it.

Drone was founded in 2012. The only money it raised was $28,000 when it participated in the Alchemist Accelerator in 2013, according to Crunchbase data. The deal has closed and Rydzewski has joined the Harness team,

Cisco acquires Modcam to make Meraki smart camera portfolio even smarter

As the Internet of Things, proliferates, security cameras are getting smarter. Today, these devices have machine learning capability that help the camera automatically identify what it’s looking at — for instance an animal or a human intruder? Today, Cisco announced that it’s acquired Swedish startup Modcam and making it part of its Meraki smart camera portfolio with the goal of incorporating Modcam computer vision technology into its portfolio.

The companies did not reveal the purchase price, but Cisco tells us that the acquisition has closed.

In a blog post announcing the deal, Cisco Meraki’s Chris Stori says Modcam is going to up Meraki’s machine learning game, while giving it some key engineering talent, as well.

“In acquiring Modcam, Cisco is investing in a team of highly talented engineers who bring a wealth of expertise in machine learning, computer vision and cloud-managed cameras. Modcam has developed a solution that enables cameras to become even smarter,” he wrote.

What he means is that today, while Meraki has smart cameras that include motion detection and machine learning capabilities, this is limited to single camera operation. What Modcam brings is the added ability to gather information and apply machine learning across multiple cameras, greatly enhancing the camera’s capabilities.

“With Modcam’s technology, this micro-level information can be stitched together, enabling multiple cameras to provide a macro-level view of the real world,” Stori wrote. In practice, as an example, that could provide a more complete view of space availability for facilities management teams, an especially important scenario as businesses try to find safer ways to open during the pandemic. The other scenario Modcam was selling was giving a more complete picture of what was happening on the factory floor.

All of Modcams employees, which Cisco described only as “a small team” have joined Cisco, and the Modcam technology will be folded into the Meraki product line, and will no longer be offered as a stand-alone product, a Cisco spokesperson told TechCrunch.

Modcam was founded in 2013 and has raised $7.6 million, according to Crunchbase data. Cisco acquired Meraki back in 2012 for $1.2 billion.

LA’s consumer goods rental service, Joymode, sells to the NYC retail investment firm, XRC Labs

After raising $15 million in financing from one of technology’s most successful global investment firms, the Los Angeles-based consumer goods rental company Joymode is selling itself to an early-stage retail investment firm out of New York, XRC Labs.

Joymode’s founder Joe Fernandez will continue on as an advisor to Joymode as the company moves to pivot its business to focus on retail partnerships.

The relationship with XRC Labs’ Pano Anthos began after a small pilot integration between Joymode and Walmart launched in late 2019. “[It] became obvious that we should go all in on retail partnerships,” according to Fernandez. And as the company cast about for partners to pursue the strategy, Anthos and his firm, XRC, kept being mentioned, Fernandez said.

The precise terms of the deal with XRC Labs were undisclosed, but Joymode will become a wholly owned business of XRC and could potentially return to market to raise additional funds from additional investors, according to Fernandez.

“We could never crack growth at the scale we needed,” said Fernandez of the company’s initial business. “From day one, my belief was Joymode was going to be huge or dead. We grew, but given the cost structure of our business it put a lot of pressure on the business to grow exponentially fast. Everyone loved the idea but the actual growth was slower than we needed it to be.”

Though Joymode wasn’t a success, Fernandez said he can’t fault his investors or his team. “We got to iterate through every possible idea we had. Literally every idea we had was exhausted… We failed and that’s a bummer, but we got a fair shot,” he said.

What remains of the company is an inventory management system on the back end and a service that will allow any retailer to get involved in the rental business going forward.

“Part of the thesis was that by making things available for rental, people would want to do more stuff,” said Fernandez, but what happened was that consumers needed additional reasons to use the company’s service, and there weren’t enough events to drive demand.

“I believe that the inventory management system we made was incredible and it will be a standard for retailers doing rentals going forward,” he said. 

 As the company turned to retailers, the rental option became a way to generate revenue through additional products. “All the accessories that made the event even better,” said Fernandez. “Add-ons, try before you buy, experiential things that are just much more complete in a retail environment.”

At Joymode, the problem was that the company was owning the inventory, which created a high fixed cost. “We never felt confident with the growth in LA to justify the expense of opening in another city,” Fernandez said. “If we had cracked user acquisition in LA we would have rolled it out in a bunch of places.”

Ultimately, Joymode members saved $50 million by using Joymode to rent products rather than buying them. In all, the company acquired 2,000 unique products — from beach and camping equipment to video games, virtual reality headsets to cooking appliances. On a given weekend, roughly 30,000 products would ship from the company’s warehouse to locations across Southern California.

At XRC Labs, a firm launched in 2015 to support the consumer goods and brand space, Joymode will complement an accelerator that raises between $6 million and $9 million every two years and manages a growth fund that could reach $50 million in assets under management.

For Anthos, the best corollary to Joymode’s business could be the rental business at Home Depot. “Home Depot’s rental business is over $1 billion per year,” Anthos said. “There’s going to be this enormous component of our society and for them renting will be not just a more sustainable but reasonable option. They’re going to want to rent because they don’t want to own it.”

Joymode was backed by TenOneTen, Wonder, Struck Ventures, Homebrew and Naspers (now Prosus).