Responding to demand for VMware releases…Strengthening technological competitiveness through strategic acquisitions
Contrabass emerges as a VMware alternative, with virtualization solution sales projected to grow sevenfold.
-M&A data center, Japan expansion success… FreeC investment attraction in full swing
Orchestra (CEO Beomjae Kim and Youngkwang Kim), an AI and cloud software company, announced on the 23rd that it has acquired Data Command, a company specializing in migration and disaster recovery (DR) based on continuous data protection (CDP), to strengthen cloud resilience capabilities that form the foundation of cloud native and server virtualization environments.
With the recent acceleration of AI and cloud transitions, the importance of redundancy, backup, and real-time recovery systems to prepare for unexpected incidents like system failures and ransomware is growing. Consequently, the role of infrastructure software supporting the continuity of core systems and stable service operation is also gaining greater prominence. Orchestra's "Contrabass" is meeting this demand and establishing itself as a key solution driving AI and cloud transformation.
Through this acquisition, Orchestra has responded to the rapidly growing demand for cloud migration by launching Contrabass Legato, a specialized migration tool based on CDP technology that covers everything from VMware-based system migration to disaster recovery, ensuring a stable transition environment for a variety of environments. This provides customers with a practical alternative to VMware migration, and Orchestra has solidified its technological leadership in the domestic cloud market, accelerating its growth.
Founded in 2018, Orchestra has achieved an average annual growth rate of 200% and is Korea's only full-stack AI and cloud software company. It has proven its technological prowess and reliability by securing clients across diverse industries, including public institutions, major corporations, and the top five financial holding companies. In 2023, Orchestra secured KRW 130 billion in Series B funding, valuing the company at KRW 630 billion. Building on this success, Orchestra is expanding its customer base across all industries, including the public sector, finance, manufacturing, and telecommunications.
Amidst the cloud transition, centered on infrastructure software, driving Orchestra's growth, the recent "AI transformation" trend and the rise of sovereign AI are rapidly increasing demand for private clouds across industries, leading to a surge in new adoptions and win-back cases for Contrabase. Consequently, Orchestra's virtualization software revenue is expected to grow more than sevenfold year-over-year, and its total revenue is projected to exceed KRW 100 billion by 2025, entering a hyper-growth phase.
Orchestra is also pursuing strategic M&A to strengthen its AI and cloud competitiveness. In 2024, it acquired Orchestra AGI, a leading data ontology company in Korea, to enhance its generative AI solutions and secure approximately 100 AI and big data experts. Recently, Orchestra was selected as a member of the Upstage Consortium for the Ministry of Science and ICT's "National AI Elite Team," and, with government support in data and GPUs, is establishing itself as a key player in the Korean AI ecosystem.
The strategy of securing data center construction and operational expertise also proved effective. Through a public-private partnership (PPP) cloud project at the Daegu Center of the National Information Resources Service (NIRS), jointly invested with KT Cloud, Orchestra established a private cloud service operating environment featuring its solutions and secured operational and control expertise. Building on this foundation, Orchestra plans to fully invest in new AI data centers and expand its reference network nationwide.
The company is also achieving success in its overseas expansion. Since entering the Japanese market in July, it has secured key customers, demonstrating its potential as a viable alternative to VMware in a country with a high dependence on it. Building on its success in the Japanese market, the company plans to accelerate its expansion into global markets, including Asia.
Meanwhile, Orchestra is on the verge of becoming a unicorn by attracting strategic investment in Pre-C to proactively respond to the rapidly growing demand for AI and cloud computing and accelerate the expansion of its core business ahead of a large-scale Series C investment.
Orchestra CTO Kim Young-kwang said, “Infrastructure software such as Contrabass is a core element that must have not only performance but also continuity, stability, and reliability.” He added, “Through this acquisition, we will further strengthen our migration and virtualization conversion capabilities, and based on our technological prowess encompassing AI and cloud, we will strengthen our market responsiveness and global competitiveness.”
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