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Game grid backed by Cisco

Butterfly.net receives another $10 million in funding from backers including Cisco Systems.

Butterfly.net, an IBM-backed company aimed at creating on an on-demand computing infrastructure for running online games, announced Monday it has received another $10 million in funding from backers including networking equipment giant Cisco Systems. Butterfly.net was launched two years ago to apply grid computing techniques--in which large computing tasks are divvied up among multiple systems--to the challenging business of running multiplayer online games.

Backers include video game leader Sony, which is helping game makers adapt titles for the company's market-leading PlayStation 2 console to run online via Buttefly.net.