Pano Logic makes a piece of hardware that allows several people to use a single computer as if each were on their own, private desktop, a strategy called “virtualization” that turned VMWare into a giant in the server market.

The strategy cuts down on the total number of computers needed in an organization, reduces electricity costs, and can make IT support cheaper. However, software licenses and hardware costs can bring the cost back up. In the end, Pano Logic says its product reduces the total cost of ownership by 70 percent.

Desktop virtualization software is also often called a “thin client”, and is offered by other companies like Citrix and Sun Microsystems. There’s also NComputing, which we covered here.

The $12 million funding in Pano Logic was led by Goldman Sachs. Existing investors ComVentures and Foundation Capital also participated. The company is based in Menlo Park.

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