Outerbay has secured a third round:

"OuterBay, a leader in information lifecycle management (ILM) solutions for applications and databases, today announced it has received $12 million in Series C financing. Focus Ventures led the round with a $4.2 million investment, bringing OuterBay's total funding to $40 million. The round was completed at an increased valuation over the prior round, which occurred in June of 2003. Previous investors BA Venture Partners, LeapFrog Ventures, Mayfield, and Redpoint Ventures also participated. The financing will be used to expand field and product operations for OuterBay's ILM products which lower IT infrastructure costs, increase application performance and help companies comply with data retention regulations. With this round, OuterBay is positioned to bring the company to profitability."

It seems the company really operates in a high-margin environment:

"OuterBay has a great reputation with its customers, including several Fortune 1000 companies with whom we spoke," said Steve Bird, Focus Ventures' general partner. "In our conversations, we found that many of chief technology officers are looking for better ways to reduce the cost of high-end storage without compromising application performance. OuterBay is in a unique position to become the principal market leader in the information lifecycle management space and we are pleased to support the company's products and their outstanding team."