The Sunnyvale, Calif. company, backed by venture firm Kleiner Perkins Caufield and Byers (see our coverage last year), uses techniques similar to the popular VMWare. While VMWare enables a single computer to run multiple operating systems, Xsigo focuses on another problem: Reducing the multiple connections between servers and networks into a single connection. The company launched earlier this week, and the Mercury News has a story today.
The company, started by former Juniper engineers, also has backing from Greylock Partners and Khosla Ventures. The amount was undisclosed. The company has also recruited Steven Haley, a top sales guy from Cisco, to be its chief operating officer.
Cisco has invested $50 million into Nuova Systems, considered a competitor. Cisco also says it has a product called the Vframe Data Center that solves the problem in a different way — without virtualization. Meanwhile, Intel is backing another competitor, 3Leaf Systems, which launched in May with $32 million in backing (see our coverage)