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Juniper Vets Aim for Data Center

Two (Nasdaq: JNPR) veterans claim they're creating a new class of data-center equipment with their latest startup.

The year-old Xsigo Systems Inc. (pronounced tsee-go) is "still in stealth mode," says CEO Ashok Krishnamurthi, who left as Juniper's VP of infrastructure products about a year ago (see Juniper 'Founder' Flees).

Krishnamurthi and his brother R.K. Anand (by Indian convention, the "K" in Anand's name stands for Krishnamurthi) left Juniper a year ago to found Xsigo with third brother S.K. Vinod (see Juniper 'Founder' Flees). They're not saying how much money Xsigo has raised, but it certainly has big-name believers, as Greylock Partners and Kleiner Perkins Caufield & Byers invested.

While Xsigo isn't detailing its plans, Krishnamurthi says the startup aims to make the data center more efficient by allowing computational resources -- servers, for example -- to hop from one application to another as needed. The idea is to end overprovisioning, whereby excess servers and switches are deployed just to satisfy peak demand.

Overprovisioning can seem wasteful in areas such as financial trading, where some applications run only part of the time. "What happens to these compute elements after 5 o'clock? They remain idle. What if they could make those servers available for other applications?" Krishnamurthi says.

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