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Scale Eight Set to Close $30M: Page 2 of 3

Conversely, Scale Eight has deployed much less expensive, off-the-shelf Intel Corp. (Nasdaq: INTC) servers in its four locations -- Tokyo, London, Virginia, and San Francisco. It claims its patent-pending software makes these industry-standard platforms work like an EMC or Network Appliance Inc. (Nasdaq: NTAP) system would (a claim its competitors chortle over).

Still, Microsoft Corp. (Nasdaq: MSFT) is a Scale Eight customer, which is a pretty impressive endorsement. Also, several online digital photography companies are trialing Scale Eight’s infrastructure to offer "photo-locker" and medical image services.

Scale Eight's latest round will be led by Oak Investment Partners, which also led the company’s second round. All existing investors will buy into this round, as well as a new buyer, Star Ventures.

The funding should last Scale Eight through late 2002, Watts says.

The majority of the money will be spent on beefing up sales, marketing, and engineering teams. Scale Eight currently has 85 employees and is considering building its next data centers in South East Asia and Latin America.