The German company hopes to use the cash to challenge walled-gardens.
A German open-source software company is set to receive a £13m investment from an ISP to help it grow, it has been revealed.
Open-Xchange (OX), which creates software challenging the walled-gardens favoured by over-the-top companies like Google and Facebook, will secure the cash from United Internet Ventures, a fellow German company and the owners of 1&1 Internet, as well as shareholders.
The funds are expected to drive OX’s growth in software development, professional services and international business development, as well as marketing and sales.
It means it can funnel more resources at writing and selling software which enables full integration of email, documents, scheduling and social media.
Part of the money comes from Hermann-Josef Lamberti, the former COO of Deutsche Bank who is about to join the company’s supervisory board.
He said: "OX has the potential to disrupt the cloud market in the coming years. Its technology will change the way how businesses and private users will buy and consume cloud services.
"OX is uniquely positioned in this market, enabling telcos, web hosters, mobile and cable operators alike to successfully compete with over-the-top giants. Its software has a proven track record that is designed and built for their specific needs."
OX CEO Rafael Laguna added: "OX is the pioneer in making collaboration and productivity software accessible to anyone with a browser.
"As we aim to power ruthlessly open cloud solutions for the mobile web age, we’re encouraged by the validation in our client base, business model and global business expertise that this backing signifies.
"This addition of expertise to our board is critical as we expand our product offering during a time of great disruption in cloud-computing, and we’re thrilled to have investors who share our vision – to transform how people work."