Xythos Announces $6.3 Million in Series A Funding; WebDAV Company Catches Attention of IDG and Softbank

Business Wire, May 1, 2001

Business Editors & High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--May 1, 2001

Xythos Software Inc, today announced that it received $6.3 million from IDG Ventures, Softbank Venture Capital and other investors.

Both IDG and Softbank contributed $3 million each. Xythos develops server-based file management software that provides secure file storage and sharing functions over the Web, leveraging businesses' existing storage network infrastructures.

Xythos was founded in 1999 with the vision of utilizing the Internet to provide secure file access to any user from any Web-enabled device. It is pioneering the server-based file management industry by utilizing the new WebDAV standard. While HTTP is the standard protocol for Web page presentation, WebDAV extends its functionality to provide secure file writing and sharing capability, helping businesses "Webify" their file management. In addition to extending end user file utility, Xythos software also helps businesses leverage their storage network investments by operating universally across diverse storage and server architectures and operating environments, including a wide variety of SAN and NAS implementations.

"Customers are demanding standards-based solutions to maximize IT efficiency and minimize their total storage costs," said Kevin Wiggen, Xythos founder and CEO. "Whether businesses choose to outsource their storage and file management needs to hosted service providers or continue to use their own data centers, Xythos WebFile Solutions can help them be more productive."

Xythos will use its Series A funding to expand and accelerate the introduction of its WebFile solutions and increase research and development at its new headquarters in San Francisco. The company markets its products directly to corporate IT departments, as well as through hosted service providers (HSPs) and Web applications developers.

Corporate enterprises are demanding solutions to assist in file management on complex storage networks, due to several factors, including the e-business phenomenon and employees that need remote access to data on laptops or PDAs. As a result, IT departments are implementing storage management solutions or outsourcing to xSPs. IDC predicts the storage management software market will increase at a compound annual growth rate of 15.9% from a 1999 value of $5 billion to a 2004 value of $10.4 billion, as more storage software comes to market to meet the needs of HSPs and enterprise IT departments. Xythos' technologies meet the demands of HSPs and enterprises by seamlessly fitting into any existing storage network and running on any platform.

Xythos Software Inc.

Xythos was founded in 1999 with the vision of utilizing the Internet to provide universal file access to any user on any device with an Internet connection. The company provides the most powerful, integrated Web file management software to date and is pioneering the use of WebDAV and HTTP to transform the business Web from a read-only to a read, write, and share medium. Xythos solutions are designed to maximize storage functionality across diverse server and network environments, providing cost saving utility to business customers, hosted service providers, and applications developers alike.