Santa Clara, CA-based 3Leaf Systems, a provider of virtualization solutions for enterprise data centers, has secured $35 million in series C from LSI Corporation with follow on investments by Alloy Ventures, Enterprise Partners Venture Capital, Intel Capital, and Storm Ventures.

“This additional financing by LSI and our existing investors validates 3Leaf’s vision in delivering flexible server virtualization solutions designed for enterprise data centers, addressing the dynamic business requirements of markets such as cloud computing, e-commerce and Global 2000 enterprises,” says B.V. Jagadeesh, President and CEO, 3Leaf Systems.

With Jagadeesh on 3Leaf Systems’ ‘dock’, the company is betting on the $22 billion worth virtualization server market with its x86 server. 3Leaf aims at streamlining the utilization of x86 servers, which are typically deployed as less expensive alternatives to mainframe and Unix boxes. With the server, the company can run a single operating system across as many as 16 servers, creating a powerful multiprocessing system out of a bunch of low-cost servers. By virtualizing the CPU, memory and I/O, 3Leaf Systems can bring in mainframe-class features in terms of scalability, flexibility, and reliability into the server architecture, which translates into dramatic cost savings. 3Leaf can do it using 80 percent fewer SAN and LAN switch ports, 85 percent fewer NICs and HBAs, and 70 percent less cabling, for which companies spend 85 percent out of their HBA and NIC capital budget.

The company with a team of about 70 members worldwide sees a strong interest level primarily in medium market enterprises. Founded in June 2004, 3Leaf Systems gained confidence with the licensing of the Intel QuickPath Interconnect, which allows virtualization support for Intel servers, allowing businesses to allocate resources on demand to meet business needs, while at the same time significantly reducing costs. The company has gained the confidence of several financial institutions and Fortune 100 companies.