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Egenera Banks $30 Million

By Colin C. Haley     Feedback

The Marlborough, Mass., data center infrastructure company will use second-round backing to launch its product and bolster sales and customer service operations.

Egenera , a Marlborough, Mass., data center infrastructure company, has raised $30 million in a second-round financing to launch its product and bolster its sales and customer service operations.

New investor Austin Ventures led the round. Repeat backers, Spectrum Equity Investors, Kodiak Venture Partners, CSFB Private Equity, Goldman Sachs and YankeeTek Ventures also participated.

"Customers are seeking physical simplicity, improved scalability, lower cost of ownership and a new level of responsiveness from their systems suppliers," said Basil Horangic, an Austin Ventures partner. "By delivering a solution purpose-built to address these requirements, Egenera is poised to capitalize on a significant market opportunity."

Egenera's system integrates functions -- including processing, networking and data management -- now dispersed across server hardware, operating system software and data networks.

The Egenera hardware consists of 96 Intel processors, switches and other processing gear contained in a box roughly the size of a tall, narrow gym locker. It's designed to work with storage area networks -- that is, systems on which data is stored on servers throughout a local or wide area network, rather than on dedicated pieces of storage hardware.

Processors inside the Egenera hardware require no external connections; all data traffic can be routed across the Internet through the device to and from storage servers spread across the network. The system is managed by software that allows customers to to allocate and monitor physical and data resources through a single control point.

Among other benefits, Egenera says that its system can replace a network of 24 conventional servers requiring more than 100 cable connections with a system needing as few as six cables.

The company is privately held and founded in March 2000. In October, it raised $20 milllion in first-round financing.

Reprinted from boston.internet.com.

This article was originally published on July 23, 2001
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