Convey Computer, proprietors of the hybrid core compute architecture, have announced that they have closed $24.15 million in Series B financing. This latest round of funding was led by new investor, Braemer Energy Ventures. Braemer was also joined by CenterPoint Ventures, Intel Capital, InterWest Partners, Rho Ventures and Xilinx, all Series A investors. The total venture capital investment so far is $39.25 million.
This latest investment is a significant achievement during challenging financial times,” said Philip “Flip” Gianos, Convey board chairman and InterWest general partner. “Convey is one of the most interesting computer companies started in decades. The money raised speaks to the size of the market, the relevance and innovation of the solution and, most importantly, to the caliber and effectiveness of the Convey team.”
Alongside their venture investments, Braemer Energy and Rho Ventures will each add a new member to Convey’s board. Braemer has chosen Dr. Jiong Ma and Rho has chosen Joshua Ruch to assist on the Convey board of directors.
A modern data center can cost hundreds of millions of dollars, with power and cooling costs making up half of the annual operating costs. Every watt required to power a server requires another watt to cool it and cooling equipment can take as much space as the servers,” said new Convey board member, Jiong Ma, principal with Braemar Energy Ventures. “On key HPC workloads, Convey’s HC-1 reduces the number of servers required dramatically. One rack of Convey servers can replace multiple racks of traditional application servers, which means that customers can realize dramatically lower power and cooling costs. For example, one Convey customer expects the HC-1 to reduce their power and cooling costs by 92 percent.”
Given the recent lagging financial markets and their subsequent effect on HPC companies, its clear that the key notion related to new funding is: What are you going to do with it? I had a chance to speak with Bruce Toal and the Convey executive team regarding their corporate roadmap given the influx of funding. According to Bruce, Tony Brewer and Steve Wallach, one of the first orders of business will be to begin shipping production units later this quarter. Convey has gone from public release at SC08 in November of last year, to production unit volume in the summer of 2009. This only speaks to the clear company direction permeated throughout Convey’s ranks.
The new funding will also help to establish a wider sales force and global company footprint. Ultimately, Convey looks to have a solid business plan, a remarkable product and a bright future. If you’re interested in more info on Convey, you can read the insideHPC technical analysis here.