Feeds

RLX tempts yet another investor

Keep the meter running

  • alert
  • submit to reddit

Boost IT visibility and business value

Blade server maker RLX Technologies defied the skeptics this week by securing millions more in funding.

ABS Capital Partners led a $12m round of financing for RLX. The money will be used to expand RLX's sales and marketing efforts here and abroad. Unsurprisingly, ABS partner Dean Goodermote gained a seat on RLX's board, which is already loaded with investors from firms such as Soros Private Equity Partners, Ignition Partners and Sternhill Partners.

"ABS Capital Partners has an outstanding track record of investing in growth companies, and we feel a vote of confidence from them represents a real validation of our strategy," said Doug Erwin, CEO of RLX.

Erwin is the fourth man to take the helm of RLX since it started in 2000. The company has blown through close to $110m in funding in that time.

Back in 2000, it was much easier to understand why investors would pour money into RLX. The company was paving the way in the blade market and had top talent from Compaq on board. RLX even enjoyed a two to three year run as the most successful blade vendor around, beating out HP and IBM.

The early lead, however, has disappeared with the Tier I vendors now dominating the blade server market. RLX still has solid product by most measures, but can't come close to matching the big boys in service, customer support and overall reach. RLX has tried to counter this pressure, in part, by focusing on narrow markets such as bio-tech and high performance computing. ®

Related stories

Intel's Whitefield goes Banias in 2006
Sun drives the final nail in Cobalt's coffin
Egenera's blades are blooming
VCs pump $23m into RLX
Crusoe blade server pioneer picks Intel

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.