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Summary:

Vyatta , a Belmont, Calif.-based company that makes an open-source routing platform, has raised $10 million in Series C funding led by Citrix Systems. Previous investors Comcast Interactive Capital, Panorama Capital and ArrowPath Venture Partners also invested in this round of funding. The company had previously […]

Vyattavyatta_logo.gif , a Belmont, Calif.-based company that makes an open-source routing platform, has raised $10 million in Series C funding led by Citrix Systems. Previous investors Comcast Interactive Capital, Panorama Capital and ArrowPath Venture Partners also invested in this round of funding. The company had previously raised a total of $18.5 million.

The investment in Vyatta shows that Citrix is losing ground to the VMware-Cisco Systems colossus. Those two companies are becoming stronger players inside the enterprise data center, both from a server and a networking perspective.

As we’ve outlined in the past, virtualization is going to force networking vendors to change. There were two scenarios that we outlined; one was that networking vendors could shift their business and sell to cloud operators — Cisco is doing that with its unified computing efforts.

The other option was for routers, load balancers and firewalls to run inside the “virtual appliances.” Some believe that the routing, blocking and distribution of traffic can be done well in a “cloud environment.” The Vyatta-Citrix relationship falls under this category. Vyatta sells networking software and hardware appliances to enterprises and service providers. Their products are based on the x86 architecture, which can be virtualized using hypervisors such as Citrix’s XenServer virtualization product.

Citrix is a believer in this trend and it recently virtualized its Netscaler platform as part of its efforts to virtualize network resources. While Vyatta is small, it helps Citrix get into the enterprise routing market. For little Vyatta — well, being part of Citrix’s cloud efforts can’t hurt.

Disclosure: Vyatta founder Allan Leinwand is an occasional guest contributor to GigaOM.

  1. I like Vyatta, now if only they would get more aggressively into WAN link termination marketplace with STM and OC cards.

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  2. Given what a complete piece of garbage Citrix is on Linux it seems amusing that they are turning to open source anything to save them from getting their asses handed to them.

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  3. @df – what product are you talking about? Citrix on Linux makes no sense. If you mean Presentation Server/XenApp then I think that you need to have another look. If you are talking about enterprise Linux servers running on XenServer, then I think you have your facts more than a little wrong…

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  4. Yes, presentation/XenApp — look anywhere on the internet and you’ll find people battling to get it working. I’m guessing you’ve never tried…

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  5. This is actually very interesting.
    If its saves money on calls, why not then?

    The big Q is:
    How much to invest compare to how much to save.
    I wonder…

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  6. Vyatta is a great addition to the Open Infrastructure portfolio. Their alliances with large players including Citrix is a testimony to the quality of the product and business acumen.

    Say what you like, but Citrix is putting it’s money where it’s mouth is and actively investing in open source, helping firms to grow their product line and extend their geographical and vertical reach.

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