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Egenera Lands More Funding

As more enterprises flirt with virtualization, startup Egenera has racked up $26 million in additional funding, although there is still no date for the company's much-talked-about IPO. (See Egenera Raises $26M .)

The round, which was led by Pharos Capital, and Egenera's OEM partner Fujitsu Siemens, brings the firm's total funding to over $150 million. Tom Sheehan, Egenera's CFO, told Byte and Switch that the firm needs big bucks to go up against its virtualization rivals IBM, HP, and Sun. "Our biggest challenge over recent years has been one of distribution," he says. "We're competing against the big companies and we probably have only about 30 quote-carrying reps in North America."

The funding will be used to double Egenera's North American sales force, where the vendor relies mainly on direct sales. "We want to get more aggressive," explains Sheehan. (See FSC, Egenera Sign Deal and Egenera Cuts Big Blade Deal.)

Increasing numbers of users are looking to virtualization as a way to control the skyrocketing cost of storage, even though there are still standards issues to be resolved. (See Insider Tackles SAN, Insider: Virtualization Needs Standards, Insider: Users Cite Virtual Savings, and Insider Studies NAS.)

Egenera hit the headlines last year when it filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to trade its common stock on the Nasdaq under the symbol EGEN. (See Egenera Seeks IPO.) But, at a time when tech sector IPOs were few and far between, market conditions later forced the startup to rethink its IPO plans. (See Egenera Waits on IPO.)

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