After two years of hard work, August Capital finally sees the fruits of AppFormix, Inc.’s labor.

AppFormix, a provider of infrastructure performance optimization for Cloud-based datacenters, aims to bridge the gap between applications and infrastructure. The company recently announced that it would integrate with Mirantis OpenStack to bring improved analytics and control to IT administrators. AppFormix CEO Sumeet Singh has a long history in the tech industry, having served previous stints with Microsoft Azure and Cisco Systems, Inc., as well as founding other companies.

Discussing the evolution of Cloud with John Furrier – cohost of @theCUBE, during OpenStack Silicon Valley, Singh sees hybrid Cloud as the predominant model in the future. “The enterprise data center needs to improve, and we need to treat enterprise Cloud like a product,” he said.

For businesses, Singh observes business using the Cloud first while transforming other applications. “Once you’ve been through that evolution, running Cloud native, then you can take a step back and fix your own infrastructure and bring those applications back in house,” he said. “What you eventually get is a fluid infrastructure that’s a hybrid Cloud model.”

Public Cloud, private Cloud and SaaS

Also joining Singh on theCUBE was Vivek Mehra, general partner of August Capital. “There will be a public Cloud and then a set of applications that run on the enterprise site,” Mehra said. “All of these things will exist: public Cloud, private Cloud, and SaaS.”

John Furrier, cohost of theCUBE, asked Mehra about the challenges of investing in an enterprise and tech businesses in general. “It’s become a lot easier to start companies,” Mehra said. “And it’s easy to scale them also. That means there is a lot more innovation happening. There’s also a fallout of companies that have brilliant insights but can’t convert that to a successful business. Lots of money has been poured into those companies, unfortunately. My caution is to think about the technology, who’s going to buy it and at what cost. And build in a holistic fashion.”

Watch the full interview below, and be sure to check out more of SiliconANGLE and theCUBE’s coverage of the OpenStack Silicon Valley 2015.

Photo by SiliconANGLE