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Starfish Ventures invests $2M in Scalify

Monday, 07 May 2012
Starfish Ventures invests $2M in Scalify

MELBOURNE, Australia – May 7, 2012 – Starfish Ventures today announced a $2,000,000 investment in Scalify, a networking technology designed for fast and efficient creation of multi-user applications, especially online games and virtual worlds.

Scalify’s core technology, Badumna, uses the end-user network to deliver most of its functionality instead of relying on large server-farms. This leads to games that are more attractive to play, have better performance and lower operating costs.

The market for online games has undergone explosive growth in recent years, with many popular games attracting over a million players per day very soon after launch. However, this rapid growth can create major infrastructure challenges for game publishers.

The traditional client-server model for online games relies on communication to be centralised, which slows gameplay, is difficult to scale quickly, and reduces the number of players online at any one time. By allowing traffic to be carried peer-to-peer, Badumna resolves these issues and enables publishers to create new types of games that were previously either impossible or impractical.

Scalify released the first version of the Badumna product last year and it is now being used to power games across the US, Europe and Asia. The investment funds will be used to expand the company’s sales and marketing capability and increase the range of game development platforms supported.

Starfish Investment Director Anthony Glenning joins the Board of Scalify. Mr Glenning was the founder of Tonic Systems, which was acquired by Google in 2007. He said: “The online gaming market is large and is growing quickly, but is hindered by the traditional client-server model which is expensive and limits scalability. We recognised Scalify’s unique solution for peer to peer games, especially in terms of scalability and reducing traffic to the server”.

Steve Telburn, CEO of Scalify, said: “We always get a great reaction to our product from customers, so we’ve always been very keen to expand its reach. We’re thrilled that this investment will now enable us to show Badumna’s full potential.”

The company’s core technology was developed by NICTA, Australia's Information and Communications Technology Research Centre of Excellence. The NICTA peer-to-peer research team saw that the traditional client-server architecture created many problems for multi-player applications such as online games and virtual worlds, and undertook a four-year research program to design and develop a better approach.



Read more about Scalify