Feeds

Blade Network nabs $10m in funding

Shy server maker kicks in some dough

Securing Web Applications Made Simple and Scalable

Blade Network Technology - the blade switching business that was mercifully spun out of Nortel Networks before the Canadian firm collapsed - has locked down some Series B funding to help it bolster its business of selling switches for blade server chassis, and expand out to top-of-rack switches.

In this second round of funding, Japanese server maker NEC led the way and was joined by Juniper Networks, one of the key suppliers of 10 Gigabit Ethernet switches. It also included Garnett & Helfrich Capital, which bought the business from Nortel in 2006, when the capital markets were a little more liquid.

An unnamed third party infrastructure supplier also kicked in some of the $10m in the Series B round, but was apparently too shy to admit it. This was almost certainly IBM, which inked a cross-patent licensing agreement with BNT back in April and which is one of the big resellers (if not the biggest) of BNT's blade switches. It could possibly be Hewlett-Packard, of course, which resells BNT's switches, or Verari Systems, which also sells BNT's products.

Vikram Mehta, BNT's president and chief executive, said that when NEC led this financing round, as part of its due diligence it calculated a valuation of the privately held company. It reckons that BNT is worth about $230m.

It might seem a bit perplexing as to why Juniper Networks is interested in putting money into BNT, which is one of its rivals in the data centre. Then again, Juniper might need to resell BNT blade switches so it doesn't have to engineer its own. Mehta was coy about what Juniper was planning.

Mehta was similarly coy about BNT's financial performance, but gave some hints as to how well the switch maker is doing despite being relatively young and despite the economic downturn. In the third quarter of fiscal 2009 ended in July, BNT had 31.5 percent revenue growth year-on-year. Mehta said that BNT was generating cash flow from operations, that the third quarter was "handsomely profitable," and that the company was now at an annual revenue run rate exceeding $100m.

By the way, Nortel still owns a stake in BNT, which Mehta characterized as "less than 20 per cent." Nortel's creditors are looking for assets after the Canadian networking giant went bankrupt in January. ®

The Essential Guide to IT Transformation

More from The Register

next story
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
Gartner: To the right, to the right – biz sync firms who've won in a box to the right...
Magic quadrant: Top marks for, er, completeness of vision, EMC
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.