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EverGrid: Page 2 of 3

These claims must be proven in real life. But at least one analyst, Gordon Haff of Illuminata, agrees that hypervisors can impact processor performance, although he says that, for many users, this is hardly the end of the world. "People are willing to put up with a performance overhead if it brings with it other benefits," he says, adding that server consolidation has been one of the major bonuses of virtualization.

"Plus, in another six months or a year, processors will be much faster -- quad-cores are just around the corner," he says.

The first version of EverGrid's software, which will be launched next year, will be aimed at High Performance Computing such as the LS-DYNA engineering application or the ANSYS physics tool.

Sometime in 2007, the company will also unveil an enterprise version of the software aimed at Oracle and other database applications. Pricing for the software is still to be determined although, at this stage, the firm looks likely to use an annual license fee.

Despite its ambitions, EverGrid has some way to go before it can match the market presence of established players such as VMWare and XenSource. The startup currently has just two organizations beta testing its software, a high performance computing project at Oklahoma State University, and an un-named financial services firm.