Xsigo Raises Money for Virtual I/O

Stack_Comparison_HorizXsigo today said it’s raised an undisclosed amount of venture capital from Kleiner Perkins Caufield & Byers, Greylock Partners, Khosla Ventures and North Bridge Venture Partners to support sales of its I/O virtualization appliance. Several filings submitted to the California Department of Securities show that back in April, the San Jose, Calif.-based startup had raised as much as $51 million, but Jon Toor, VP of marketing for Xsigo, declined to comment on either amount. Xsigo’s appliance sits inside a rack of virtualized servers and manages the way the virtual machines on those servers talk to one another, the network and the storage infrastructure. The Xsigo appliance works with any hypervisor, network and storage type.

As a data center adds more and more virtual machines, it creates two problems that companies like Xsigo are trying to solve: the personnel cost associated with having employees cable and link each server to the network, and the information bottleneck that can arise when too many virtual machines try to share access to one I/O port. Xsigo’s appliance can create a pool of bandwidth that all VMs can access on the fly; it’s managed via software so there’s no need for a person to string cable each time things change.

Cisco (s CSCO) includes virtualized I/O in its new blade servers, as do other server vendors. 3Leaf Systems and Blade Network Technologies are also trying to offer products in this area. As data centers become more dynamic, the need for flexible networking and communication is pushing adoption of these types of products.