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SAN Valley Systems nabs $25 million in second round funding

SAN Valley Systems Inc., says it has raised an additional $25 million in it's second round of funding, bringing...

the total financing to more than $31 million since the company's inception in August, 1999.

SAN Valley, Campbell, Calif., says it will use the funds to execute its product strategy aimed at delivering the so-called "Internet SAN." That is, Internet Protocol (IP) based Storage Area Network (SAN) optical edge access products that enable seamless connectivity over Internet Protocol (IP) based Metropolitan and Wide Area Network infrastructures.

"This is a hot space," said Steve Denegri, analyst for Morgan Keegan & Co., Inc., Memphis, Tenn. "The opportunity [SAN Valley is focusing on] is to essentially create SANs that are not necessarily restricted to the distance limitations of the Fibre Channel SAN. Extending the SAN over virtually unlimited distances."

Similar offerings have recently been made public by companies including Computer Network Technology Corp., Gadzoox Network, Inc., and SANCastle Technologies, Inc.

SAN Valley's products, which will be in customer trials in the fall, will interconnect enterprise and service provider networks for digital content, disaster recovery, and data backup and replication applications.

SAN Valley said that it will be making several key technology and partnering announcements in the coming months as part of it's overall strategy to deliver Internet SAN products into the optical networking market. SAN Valley will also be demonstrating their products at the upcoming Networld + Interop exhibition in Atlanta in September.

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