Xsigo Systems Raises New VC Funding

SAN JOSE, CA--(Marketwire - June 3, 2009) - Xsigo Systems, Inc., the technology leader in data center I/O virtualization, today announced it raised a new round of funding by investors Kleiner Perkins Caufield & Byers, Greylock Partners, Khosla Ventures and North Bridge Venture Partners to support the growing market demand for its award-winning virtual I/O technology.

Additionally, the company reported 25% quarter over quarter growth and experienced record customer deployments. Currently, Xsigo provides its virtual I/O solution to over 35 customers around the globe, many of them Fortune 500 companies in business-critical markets including telecommunications, healthcare, education, financial services, government, managed service providers, and technology.

Virtual I/O is gaining increasing importance as IT managers seek new answers to data center connectivity challenges. Gartner recently issued a report titled, "Case Study: Cloud Provider Achieves Ten Times Lower Total Cost of Ownership Over FCoE With Input/Output Virtualization." The report details how "a global online transaction service provider leveraged server virtualization and external input/output (I/O) virtualization in its colocated data centers to reduce server provisioning time from weeks to hours and to reduce on-site support expertise requirements to 'night watchman' levels."

In the report, Gartner recommends, "When deploying server virtualization, companies should consider I/O virtualization choices, particularly external I/O virtualization, as ways to significantly reduce costs, and improve agility and performance." The report concludes, "External I/O virtualization can significantly reduce TCO, from initial provisioning through ongoing operations. When I/O virtualization is combined with server virtualization, server provisioning times can be reduced by 99% and network capital costs can be reduced by 50% or more." Click to read the full Gartner report, compliments of Xsigo.

Jeff McCarthy, Partner, North Bridge Venture Partners, commented, "We believe Xsigo's brand of I/O virtualization reinvents infrastructure provisioning -- a data center operation that has not been updated for over 20 years. We continue to invest in Xsigo because they represent the data center of the future, not just a technology trend that will be gone tomorrow."In a recent coup for Xsigo Systems, the company received and announced Microsoft's WHQL certification -- the industry's first and only such certification to date for a dedicated I/O virtualization solution. The WHQL qualification indicates that the Xsigo I/O Director has met the standards of Microsoft and that the product has been designed to work with the Windows operating system.

Xsigo has won a number of awards and achievements over the past 12 months including: The Wall Street Journal Technology Innovation Award in the Network / Internet Technologies category; being named Storage Magazine's "Product of the Year" in the networking equipment category; being identified by Byte and Switch as a "Top 10 Storage Startup to Watch"; being named by Virtualization Review Magazine as "Take Five: Innovative Vendor"; and being identified by eWeek as a "Top 10 Disruptive New Storage Technology."

About Xsigo Systems

Xsigo Systems, Inc. is a technology leader in Data Center I/O Virtualization, helping organizations reduce costs and improve business agility. Xsigo's VP780 I/O Director consolidates server connectivity with a solution that provides unprecedented management simplicity and interoperability with open standards. By using Xsigo, it is estimated that large data centers can reduce server-related operational expenses by 80%, cut capital costs by 50%, and use 70% less cabling. The privately held company is based in Sunnyvale, CA and funded by Kleiner Perkins, Khosla Ventures, North Bridge Venture Partners and Greylock Partners. For more information, contact Xsigo at 408-329-5600, or visit www.xsigo.com.