VirtenSys, Ltd., the emerging leader in I/O virtualization solutions – a crucial new technology that enables organizations to optimize the data centers in their IT infrastructure, to improve performance and reduce total cost of ownership – announced it has received USD 12 million in its Series B funding round, all from its original investor syndicate. The syndicate comprises Scottish Equity Partners (SEP), Celtic House Venture Partners (CHVP), and GIMV. The investment will be used to expand its market, to grow its operations in the U.K. and the U.S., and, shortly, to launch its products and begin revenue generation.

“That the original investors subscribed fully to the Series B round is significant,” said Andy Roberts, chairman of the board of directors of VirtenSys. “It validates our strategy and demonstrates their confidence in the market opportunity and the demand for our products.”

Workloads on data centers are increasing exponentially and the dynamics of the IT workload are changing. These dynamics call for greater corporate agility in response to changing business conditions and require an IT infrastructure that can adapt equally fast. Now more than ever, organizations need new ways to increase data center utilization while reducing capital expenditures and the total cost of ownership. This requires even greater dynamism in the management of the IT workload.

At the same time, corporations want to maintain their investments in hardware and software. VirtenSys I/O virtualization solutions, based on the PCI Express I/O interface standard, natively available on all servers, deliver dramatic improvements in the value and effectiveness of newly installed and established data centers. They improve the ability of data centers to adapt to dynamic workloads, self-configure, and self-heal at a significantly lower total cost of ownership and higher utilization than today’s systems.

Stuart Paterson, a partner at SEP said, “SEP is confident that VirtenSys has an excellent future. Virtualization is very much at the top of CIO agendas. VirtenSys virtualization solutions increase utilization, while lowering power and cooling requirements by as much as 50 percent. This is very attractive to many organizations seeking to optimize their data centers.”

“We are very pleased with the company’s accomplishment to date,” said Dr. Tomas Valis, partner, Celtic House Venture Partners. “Greater demand is being placed on the server I/O subsystems as a result of the consolidation of many servers into a smaller number of high performance units that run multiple virtual machines. This is making I/O virtualization even more critical.”

GIMV executive vice president, Alex Brabers added, “We are impressed that VirtenSys technology has generated so much OEM interest. VirtenSys’ strategy is to protect IT investments with a standards-compliant migration path for servers to virtualized I/O resources. Their products are 100 percent compatible with the existing infrastructure within the data centers.”

VirtenSys, which was founded in December 2005, recently expanded its executive team and opened its U.S. headquarters. Ahmet Houssein, VirtenSys’ president and CEO, is looking forward to taking the company to the next level. He said, “We achieved a significant milestone with this second round of financing. Now, as we embark on the next growth phase, we are very well-positioned with the strong backing and endorsement from our investors and our board of directors. We have a great team spirit and exceptional talent in both the U.K and the U.S., and you can just feel the momentum building. It’s a very exciting time for VirtenSys.”