Intel leads $40 million investment round in Virtustream's cloud service
- 05 May, 2010 00:43
Intel Capital and several other investors have placed $40 million into Virtustream, a data center co-location and services company that recently launched a cloud computing service.
Virtustream,which was founded in 2001, is undergoing a large expansion with the purchase of two data centers in California and Virginia, and the release of xStream, a cloud computing platform aimed at midsize enterprises
Before its focus on cloud computing, Virtustream primarily offered services to help customers deploy and manage virtualized servers. With xStream, the company is now offering on-demand virtual server and storage capacity, similar to Amazon's EC2 but with a focus on enterprise workloads, such as ERP applications from SAP, Oracle and Microsoft.
Intel Capital combined with Noro-Moseley Partners and TDFunds to provide the $40 million financing round announced Monday. Virtustream also raised $25 million last September in a funding round led by Columbia Capital and Blue Lagoon Capital.
The funding will help further develop Virtustream's infrastructure and expand the xStream cloud platform.xStream provides I/O, CPU, RAM, disk and network resources, giving enterprises access through a self-service management portal, which lets customers manage both internal and external computing resources from the same screen. XStream capacity can be purchased as either dedicated or shared physical resources, and as either a managed or unmanaged service.
Virtustream's target market is businesses with revenue between $250 million and $5 billion. There are a few xStream customers in the deployment process, but they haven't fully implemented the new service yet, a company spokeswoman says.