3Leaf Systems, a Santa Clara, Calif. company that provides a server virtualization product for data centers, said it has raised $20 million in a second round of funding.

Virtualization is a hot trend because it makes data centers more efficient.

The round was led by Intel Capital, the company said in a statement sent out under embargo last week. Existing investors Enterprise Partners, Storm Ventures, and Alloy Ventures also participated in the round.

The round raises 3Leaf Systems’ total funding to $32.5 million.

From the statement:

“Next-generation data centers demand more flexibility and efficiency in order to accommodate evolving business and operational requirements,” said Bryan Wolf, managing director, Digital Enterprise Sector, Intel Capital. “The server virtualization solutions offered by 3Leaf Systems support key corporate data center initiatives such as improved power management, optimized scale-out architectures, and architectural support for on-demand computing initiatives.”
3Leaf’s Virtual Compute Environment (VCE) architecture delivers system-level virtualization to enable mainframe-class capabilities for commodity servers. With 3Leaf Systems’ server virtualization solutions, organizations can significantly reduce their investments in infrastructure and operations, and rapidly deploy and provision data center resources while ensuring their availability to meet the business requirements of today’s applications.

Also, the company said former McData President and CEO John Kelley has joined the board.

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