Chelsio raises $12 Million

Chelsio announced that it had raised $12 million Series D Venture Capital funding. Chelsio also announced that it had LSI Logic as an investor. The president and CEO of Chelsio Kianoosh Naghshineh mentioned that this funding with help Chelsio build its next generation Ethernet protocol offload engine, which will integrate NIC, TOE, iSCSI and RDMA functionality.

This round of funding should come as a huge relief to Chelsio, which has been struggling with increasing sales of its 10 Gig Ethernet and iSCSI technology. The big question is how much will the 10 Gig adapter market take off, given that current application is limited to cluster computing. One key area of growth may be in Storage Area Networks (SANs). SANs cuurently are limited to iSCSI technology which is limited to 1 Gig channels.

Press release is available at:
http://www.chelsio.com/newsevents/pr/pr_061906.php