Tuesday, December 16, 2008

Dell picks Egenera for OEM virtualization deal

By Galen Moore

Egenera Inc. reports it has an OEM arrangement with Dell Inc. (Nasdaq: DELL) that will make the Marlborough data management company’s PAN Manager virtualization software available in Dell’s line of enterprise servers.

The OEM relationship, part of Egenera’s strategy to shift more of its business to software sales through third-party channels, had been in the works for a little under a year, said chief marketing officer Christine Crandell. No financial details of the deal were disclosed.

“Dell approached Egenera about this relationship,” she said. “It was perceived by them to be strategic in their current push into the enterprise data center.”

PAN Manager orchestrates hardware and software resources across multiple servers. Coded to the metal, it is designed to orchestrate different kinds of equipment. Currently, it can handle Dell, Fujitsu Siemens and Egenera’s own EX servers, Crandell said.

In November, Egenera announced 87 layoffs worldwide, including 30 to 35 in its Massachusetts headquarters.

Egenera closed its sixth round of venture funding last December in the amount of $26 million, bringing its total venture capitalization since its October 2000 founding to $176 million. Investors have included American Capital, Fujitsu Siemens Computers, Pharos Capital Group LLC, Technology Crossover Ventures (TCV), Mizuho Bank, UBS Capital, Lehman Brothers Venture Capital, Crosslink Capital, Austin Ventures, CSFB Private Equity, Goldman Sachs, Spectrum Equity Investors and Kodiak Venture Partners.

Dell CFO Brian Gladden said the company is seeking to make acquisitions that will diversify its revenue base in a New York Times article published today.

Egenera officials declined when asked to comment on the possibility of a future exit via merger or acquisition.