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Intel, VCs invest in virtualization firm

Intel, Insight Venture Partners and Bessemer Venture Partners invest $12.4 million in SWsoft.

Intel, Insight Venture Partners and Bessemer Venture Partners have invested $12.4 million in SWsoft, a company whose software gives a single server the appearance of multiple operating systems. Virtuozzo, through one facet of a process called virtualization, lets applications believe they have a copy of either a Windows or Linux operating system all to themselves.

The Herndon, Va.-based company will use the funding to try to attract higher-end customers. Currently the software is most popular with companies that host Web sites.