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Top 25 European Cloud Computing Rising Stars: Virtensys

Top 25 European Cloud Computing Rising Stars: Virtensys

Manchester-based Virtensys started developing I/O Virtualization technologies for servers and storage platforms and needed less than a year to secure its first round of venture capital funding in October 2006, after venture capital investors Scottish Equity Partners provided Series A funding worth GBP 6.41 million to the start-up founded by entrepreneurs who left market leaders such as Adaptec, Brocade, Fujitsu, HP, ICL and Intel to establish a new enterprise.
The company has bet on an innovative vision that data center servers and storage systems will no longer physically contain complex high-speed I/O adapters. Virtensys’ solution includes native PCI Express interface that eliminates all network and storage aggregation switches while all network cables connecting each and every server are replaced with a single PCI Express cable.

Virtensys boasts solutions that allow a flexible server I/O optimization, enabling customers to increase their data center and server operational agility while utilizing industry-standard x86 servers from multiple vendors.
Solutions take into account the concept of multi-core CPUs and enterprise server virtualization where customers meet increasing demands by a multi-core server which is demanding I/O exceeding that of several single-use servers. The company’s approach to Cloud Computing eliminates dependency on a single server vendor and offers virtualization of hard-to-virtualize applications.

Virtensys’ products include VIO-400x Series I/O Virtualization Appliances that consolidate and virtualize network and storage connectivity to a rack of servers providing up to 80Gbps of Ethernet uplink bandwidth, 32Gbps of FC uplink bandwidth, and/or up to 16TB of local storage connectivity to up to 16 servers, the company said in a press release on its product portfolio.

Following an initial Series A funding by Scottish Equity Partners, the company managed to secure USD 12 million in Series B funding round in 2008, provided by an investor syndicate lead by Scottish Equity Partners and comprising Celtic House Venture Partners and GIMV. “That the original investors subscribed fully to the Series B round is significant. It validates our strategy and demonstrates their confidence in the market opportunity and the demand for our products,” Andy Roberts, chairman of the board of directors of VirtenSys, said in a press release on the deal.

The company used the funds raised to open its headquarters in the United States and to further expand its presence in the American market. “We achieved a significant milestone with this second round of financing. Now, as we embark on the next growth phase, we are very well-positioned with the strong backing and endorsement from our investors and our board of directors. We have a great team spirit and exceptional talent in both the U.K and the U.S., and you can just feel the momentum building.

It’s a very exciting time for Virtensys,” Ahmet Houssein, Virtensys’ president and CEO, commented in 2008.

A year later, in August 2009, the company secured a third round of venture capital financing, getting USD 16 million from Scottish Equity Partners, Celtic House Venture Partners, and GIMV. By completing a third round of funding, Virtensys announced its expansion policy will not be affected by growing competition from companies like Xsigo, Netirion and Next I/O.

Actually, Virtensys is well positioned to compete on equal grounds with peers in the sphere of virtualization networking. The company is constantly nominated as one of the most innovative European IT companies and has a clear vision what its future looks like in the world of Cloud Computing.

By Kiril Kirilov

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