San Francisco-based startup Oxide, has launched a cloud on premise solution, with claims to be the world’s inaugural “commercial cloud computer.” This rack-scale system enables enterprises to enjoy the advantages and flexibility of cloud computing services, but on-premises, within their data centers. The company anticipates that this new offering will resolve the long-standing dilemma faced by enterprises regarding “cloud vs. on-prem” infrastructure setups.

To build and bring the service to a larger market, Oxide also secured a $44 million in a Series A funding round, led by Eclipse VC and joined by Intel Capital, Riot Ventures, Counterpart Ventures, and Rally Ventures. The total funding amassed by Oxide to date amounts to $78 million. The company intends to utilize these funds to expedite the adoption of its cloud computer, offering teams a superior option to serve their customers.

Oxide disclosed an impressive roster of current clients, including the U.S. Department of Energy’s Idaho National Laboratory, recognized for its involvement in nuclear research, and a prominent financial services firm. Additionally, the company anticipates implementing its technology at several Fortune 1000 companies in the near future. With a substantial waiting list of eager customers ready for installation pending an increase in production capacity, Oxide foresees substantial demand.

Oxide’s servers boast several advantages, including superior power efficiency, occupying less space, and being operational in just four hours, a significantly shorter duration compared to the typical three months for server setups. Additionally, they are twice as power-efficient and occupy half the space of traditional servers.

For companies in emerging countries like Nigeria that face rising forex costs, it makes more sense to repatriate data and be on prem or within a local cloud provider  than to pay increased costs as a result of the struggling local currency.