Virtualization grabbed headlines 13 months ago, when VMware raised nearly $1 billion in an initial public offering. Now virtualization chip maker 3Leaf Systems has raised $35 million in a third round of funding to expand its offering.
Virtualization technology saves money for big companies, because it reduces the number of machines or other technology needed. In 3Leaf's case, its technology basically creates one big pool of computers from a collection of Intel-compatible servers. With it, the company can run a single operating system across as many as 16 servers, creating a powerful multiprocessing system out of a bunch of low-cost servers.
Milpitas-based LSI Corp. led the round while Alloy Ventures, Enterprise Partners Venture Capital, Intel Capital and Storm Ventures also participated.
3Leaf, based in Santa Clara, Calif., said it would use the funds to accelerate development and expand sales and marketing. The company came out of secrecy in March and announced it has licensed Intel's new processor data pathway (known as the QuickPath Interconnect bus) as part of a custom chip that creates memory-efficient links between data center servers. The company's first product is expected to be a custom chip using the HyperTransport bus created by Advanced Micro Devices. That product is due in 2009.
The company previously had raised $32.5 million. It will compete with a variety of companies in the communications chip industry.