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Opscode and Chef Deliver VC Counterpunch to Puppet Labs

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This week Opscode, the makers of the enterprise software around open source Chef, received a whopping $19.5M in net Series C funding from Ignition Partners, bringing their total financing to $31M.  That's nearly double the financing received by competitor Puppet Labs, who builds software around another config management tool—Puppet.

Back in November 2011 we reported Puppet Labs had received $8.5M in VC funding from a number of sources, bringing their total to $15.75M.  Of course, this doesn't mean that Opscode is winning this DevOps/CM tools war (but see screencaps below for GitHub stats) and remember, that's more money that Opscode may have to pay back in the long run.  However, the competition between these two firms definitely seems to be heating up.  Make no mistake, this money is going to be used to try and crush the other in the tools market.



It looks like Chef will use this money specifically to increase marketing to enterprises and to increase staff from about 50 people to about 80 (Puppet Labs had about 60 back in November).

I think it's official that companies are buying into DevOps and the tools around it, and it seems like Opscode is poised to put some distance between themselves and Puppet Labs.