The company was founded by two Cornell computer scientists, Nithin Michael and Kevin Tang, who developed the Mode Halo routing technology. Mode Halo is used to create an SD-Core to give enterprises private network reliability and quality of service that they can then combine with SD-WAN and last-mile internet.
The company recently raised $16 million in Series B funding led by GV with a grant from the National Science Foundation. That funding comes on top of an $8 million Series A round led by NEA in 2017. Mode said that the National Science Foundation evaluated Mode Halo in its testbed and found a 300-percent increase in throughput at the lowest possible delay between hosts in New York and Sunnyvale, Calif.
Ericsson is using Mode’s SD-WAN product as an overlay for its edge compute network, which it calls its Unified Deliver Network (UDN). By combining Mode’s routing algorithms with UDN Ericsson can create a private core network and offer it as a cloud service. Ericsson says this gives customers better performance than a traditional private network.
Ericsson’s UDN is live in 30 countries and the Mode SD-Core is available for beta testing with customers.
Ericsson said that this partnership with Mode will help foster the next wave of edge technologies. According to a 2018 report by Orbis Research, the global cloud private network market is expected to reach $35.73 billion by the end of 2022, growing at a compound annual growth rate (CAGR) of 14.77 percent between 2016 and 2022.