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Startup InovaWave has clinched new funding to help it piggyback on the momentum of virtualization vendors with software it claims can boost the number of virtual machines running on a physical server.

Today, the Austin, Texas-based firm announced $2 million in Series A funding from Silverton Partners. (See InovaWave Secures $2M.) Terry Ferose, the vendor's founder and CEO, says the funds will be used to double the firm's headcount from 11 to 22 employees during 2007, largely in sales and marketing.

Back in November, InovaWave unveiled its DXtreme software, which is aimed at firms running Windows virtualization such as Microsoft Virtual Server. (See InovaWave Launches DXtreme.) A version targeted at users of VMware's ESX Server is also on the cards and will be launched sometime this quarter, Ferose says. (See VMware Eyes Enterprise, Microsoft and VMware Unveils Upgrade.)

Virtual machines are essentially pieces of software that let users run separate applications or even operating systems on the same physical server. InovaWave says DXtreme can increase the number of virtual machines from four to eight on a typical server.

Ferose told Byte and Switch that InovaWave's DXtreme has achieved this by creating an individual I/O channel for each virtual machine, which transfers data directly to Microsoft Virtual Server or to ESX Server. This process, according to Ferose, reduces the amount of memory needed by each virtual machine, enabling users to deploy more VMs on a single piece of hardware.

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