Egenera Banks $30 Million

Colin C.

Updated · Jul 23, 2001

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

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
in first-round financing.

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