SWsoft, a provider of hosting automation and server virtualization software, today announced that it has received $12.4 million funding from Insight Venture Partners, Bessemer Venture Partners and Intel Capital.

Previously financed by its founders and cash from operations, this funding represents the first institutional investment in SWsoft and will be used to accelerate its global presence in both the enterprise and service provider markets. SWsoft announced that Mike Triplett from Insight Venture Partners and Jeremy Levine from Bessemer Venture Partners will join the company's Board of Directors.

As part of Intel's investment in SWsoft, the companies have entered into a technology and marketing collaboration agreement relating to SWsoft's Virtuozzo server virtualization solution. The technical and go to market co-operation will encompass current and future 32 bit and 64 bit Intel platforms and technologies such as Intel Virtualization Technology, Dual-Core and EM64T.

"SWsoft provides attractive and efficient virtualization and dynamic resource management software," said Steve Pawlowski, Intel's Digital Enterprise Group CTO and Intel Senior Fellow. "Working in conjunction with Intel Virtualization Technology and Intel Active Management Technology, this software may provide a way to extend the server virtualization model across the data center for increased reliability, enhanced flexibility and lower TCO."

"This round of investment represents an important milestone for our company in moving to the next stage," said Serguei Beloussov, Chairman and CEO, SWsoft. "We have selected these investors due to their complementary strengths and strong track records in both the hosting and enterprise markets. The proceeds and relationships will be used for acquisition opportunities, broadening our partnership ecosystems, and attracting additional sales, marketing and business development talent."