Software Deployment to Customer Clouds | nuon

The Evolution from PowerTools to Nuon: Addressing the "Bring Your Own Cloud" Demand

Jon Morehouse initially founded PowerTools in 2019 with the intention of simplifying the deployment of static websites and serverless applications to cloud environments such as AWS and Azure. A pivotal moment occurred when a client inquired about utilizing PowerTools to deploy software directly into their own cloud infrastructure.

Recognizing a Growing Trend

Morehouse shared with TechCrunch that this inquiry prompted conversations with other SaaS entrepreneurs. He quickly ascertained that requests for deploying applications within customer-managed clouds were becoming increasingly common. Consequently, a strategic shift in direction was decided upon.

This led to the 2021 launch of Nuon, a platform designed to facilitate a “bring your own cloud” (BYOC) approach. Nuon’s suite of tools empowers SaaS businesses to seamlessly deploy their applications and software into their clients’ cloud accounts, all while maintaining the advantages associated with vendor-hosted solutions, like automated server provisioning and product updates.

A Hybrid Approach to Software Deployment

“This represents a blend of SaaS and self-hosted models,” explained Morehouse, now serving as CEO. “The software operates within the customer’s environment, ensuring isolation and deep integration, with their data remaining under their control. However, it retains the user-friendly experience of SaaS and is actively managed by the vendor.”

Morehouse emphasized that manually deploying software into individual customer clouds is a costly, time-intensive, and difficult-to-scale process. Certain organizations, particularly large enterprises, mandate that software reside within their own cloud infrastructure. Companies lacking the necessary resources to accommodate this requirement risk losing potential business.

A Critical Challenge for SaaS Companies

“This is a significant concern for many founders,” Morehouse stated. “The inability to support their most sensitive and valuable clients could ultimately jeopardize their company’s future.”

Nuon's BYOC Infrastructure and Funding

Nuon aims to resolve this challenge with its BYOC infrastructure platform. The product was initially launched in November 2023, operating in a stealth mode until recently. The company is now publicly announcing a $16.5 million funding round.

Investors include Uncork Capital, M12 (Microsoft’s venture capital arm), Mantis VC, and Redpoint Ventures. Morehouse initially planned a smaller seed round but increased the target following encouraging feedback from James Wu, a partner at M12.

“The positive response from James [Wu] highlighted the potential of the BYOC movement, positioning it as a significant trend comparable to SOC 2 compliance and the broader adoption of cloud computing,” Morehouse noted.

Industry Validation and Competitive Landscape

Andy McLoughlin, managing partner at Uncork Capital, was initially hesitant to evaluate Nuon’s seed deal. However, a founder convinced him of its importance. McLoughlin’s prior experience with startups and enterprise clients had revealed a clear need for this type of solution.

He consulted with Quinn Slack, co-founder and CEO of Sourcegraph, who was initially skeptical but ultimately invested after a meeting. The participation of M12 further solidified Nuon’s potential.

“Microsoft’s comprehensive market view demonstrates their belief in Nuon as the optimal solution, team, and timing,” McLoughlin explained.

Focus on Early-Stage AI Startups

Currently, Nuon faces limited direct competition. Morehouse pointed out that building these integrations from scratch is resource-intensive for most companies. This explains the platform’s appeal to early-stage AI startups seeking a competitive advantage through Nuon’s BYOC services.

Future Developments and Vision

The company anticipates exiting beta by the end of the first quarter of the year and is actively expanding its team. Nuon is also developing new products, such as Nuon Action, which will enable companies to deploy code within a customer’s cloud for debugging and management purposes.

“The past 17 years have been defined by SaaS,” Morehouse concluded. “We believe the next 17 years will be shaped by bring-your-own cloud. This future will be AI-driven and designed to operate within the customer’s cloud environment.”