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DATAllegro has raised $64.0M across 4 funding rounds.
Key people at DATAllegro.
DATAllegro has raised $64.0M in total across 4 funding rounds.
Based in California, DATAllegro developed data warehousing appliances that combined off-the-shelf servers, open-source database software, and proprietary technology to process large-scale enterprise analytics. The company utilized a massively parallel database architecture designed to handle petabytes of data for corporate customers in the enterprise analytics market. Prior to its exit, the software provider raised $65 million in venture capital funding, including a $19.6 million Series D round from prominent institutional investors like Intel Capital, Venrock Associates, and Adams Capital Management. Microsoft acquired the business in September 2008 for $275 million, representing a multiple of 26 times its revenue and generating a 36-fold return for its initial seed stage backers. Following the transaction, the core technology was integrated into Microsoft's broader enterprise software and database portfolio. DATAllegro was founded in 2003 by Stuart Frost and Mark Thacker.
Key people at DATAllegro.
DATAllegro has raised $64.0M in total across 4 funding rounds.
DATAllegro's investors include Crosscut Ventures, Venrock.
DATAllegro has raised $64.0M across 4 funding rounds. Most recently, it raised $20.0M Series D in June 2008.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Jun 1, 2008 | $20M Series D | — | Crosscut Ventures, Venrock | Announced |
| Sep 1, 2006 | $23M Series C | — | Crosscut Ventures, Venrock | Announced |
| May 1, 2005 | $15M Series B | — | Venrock | Announced |
| Aug 1, 2004 | $6M Series A | — | Venrock | Announced |
DATAllegro was a data warehousing company that developed integrated data warehousing services and appliances, targeting enterprises needing scalable solutions for large-scale data management.[1][2][3][4] It served large organizations handling massive datasets, solving the problem of efficiently processing and querying terabyte-scale data warehouses beyond the capabilities of traditional symmetric multiprocessing (SMP) systems like early Microsoft SQL Server versions.[1][3] Founded in 2003, the company raised significant funding, including a $19.6 million Series D round in May 2008 led by an affiliate of the Hillman Company with participation from Adams Capital Management, Focus Ventures, Intel Capital, JAFCO Ventures, Palomar Ventures, and Venrock Associates, before its acquisition by Microsoft in July 2008 for an undisclosed amount.[1][5]
DATAllegro was founded in 2003 by Stuart Frost and Mark Thacker in Aliso Viejo, California.[1][4] Frost served as CEO, bringing expertise to pioneer the turnkey data warehouse (DW) appliance model alongside early competitors like Netezza.[3][4] The idea emerged amid growing demand for scalable data warehousing beyond standard database limitations, positioning DATAllegro as a high-end provider for datasets exceeding 10 TB where Microsoft held less market share.[3] Early traction included partnerships with Microsoft, evolving from joint development of accelerated SQL Server versions and reference architectures to the full acquisition in 2008 by Microsoft's Data and Storage Platform division.[1][3]
DATAllegro rode the early 2000s wave of data warehouse appliance innovation, addressing explosive enterprise data growth and the shift from SMP to scale-out architectures amid competition from Oracle.[1][3] Its timing aligned with Microsoft's aggressive push into enterprise data services via SQL Server 2008, acquisitions like Zoomix, and BI leadership, helping Redmond capture larger DW market share.[1][3] Market forces favoring appliances included rising terabyte-scale analytics needs, fueling Microsoft's ecosystem expansion and influencing DW strategies toward integrated software-hardware hybrids.[3]
Post-2008 acquisition, DATAllegro's technology was absorbed into Microsoft SQL Server, enhancing Parallel Data Warehouse (later Analytics Platform System) for massive-scale analytics.[3] Its legacy shaped Microsoft's enterprise data dominance, but as a standalone entity, it ceased independent operations. Future influence persists in modern cloud DW trends like Azure Synapse, where scale-out principles endure amid AI-driven data explosion—positioning Microsoft to lead as DATAllegro's high-end vision scales globally in the cloud era. This early pioneer underscores how targeted acquisitions propel tech giants in data infrastructure.
