Spanning Cloud Apps plans to double workforce this year

Mar 14, 2014
Austin Business Journal

An Austin software company is fueling its growth by giving users free tools and converting them as paying customers

Spanning Cloud Apps Inc. plans to hire about 40 people this year as it moves beyond providing backup for users of Google Apps and beta tests a tool for securing data. The company has increased the number of customers with free tools such as Undelete for Google Calendar, an application that retrieves deleted calendar information

Users of such tools are typically prospects for more backup products and valid sales targets. The strategy has produced a 25-30 percent conversion rate, CEO Jeff Erramouspe said

Spanning Cloud Apps, founded in 2010, develops security software for cloud computing. It employs 37 workers, but Erramouspe expects the number to reach 70-80 workers by the end of the year

The company, which is housed in a sprawling downtown office on Congress Avenue, doesn’t disclose its annual revenue. It has raised $9 million in investment capital since launching

In March 2013, Spanning Cloud Apps completed a $6 million Series B round of funding. Investors included Colorado-based Foundry Group LP though the round was led by an undisclosed strategic investor

Erramouspe, a veteran tech executive who was previously Spanning Cloud Apps’ chief revenue officer, said the company’s security application typically costs about $4,000 per year for smaller companies and $28,000 to $30,000 for larger companies

He considers Boston-based Backupify Inc. to be Spannning Cloud Apps’ chief competition. The company, which employs 46 workers, has raised $19.5 million in investment capital since launching

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