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XenSource

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Manages cloud, server and desktop virtual infrastructures to optimize datacenters and automate management processes

Palo Alto, United StatesFounded 2004Energy
Valuation $500M–1B Last recorded · 2007
Total funding $10–50M Disclosed equity funding
Unlock exact values This page shows ranges. Dealroom has the exact numbers for XenSource and the history behind them.

About XenSource

XenSource emerged from academic research at the University of Cambridge Computer Laboratory, centered on the Xen hypervisor. The foundational work began in 1999 with the XenoServers project, led by senior lecturer Ian Pratt. Pratt, along with his PhD student Keir Fraser, developed the core hypervisor, which allows multiple operating systems to run concurrently on the same hardware. Following the first public open-source release of Xen in 2003, Pratt and Fraser, joined by other Cambridge alumni like Simon Crosby, founded XenSource in early 2005 to commercialize the technology.

The company's core business was providing enterprise-grade virtual infrastructure solutions built upon the open-source Xen hypervisor. It operated on a hybrid business model, offering the Xen hypervisor as a free, open-source component while selling proprietary, value-added products like XenEnterprise. This commercial offering bundled the core Xen technology with management tools, targeting corporate customers in the server and desktop virtualization market. The strategy was to leverage the open-source community for core engine innovation while XenSource focused on building a complete, enterprise-ready product.

XenSource's product, the Xen hypervisor, is a type-1 or bare-metal hypervisor, meaning it runs directly on the host's hardware, providing a more secure and robust foundation for virtual machines. It supports various forms of virtualization, including paravirtualization (PV) and hardware-assisted virtualization (HVM), enabling it to run modified and unmodified guest operating systems like Linux and Microsoft Windows. A key milestone was a strategic partnership with Microsoft to ensure interoperability between Xen-based products and Microsoft's future hypervisor technology. This positioned XenSource as a significant alternative to the then-dominant player, VMware. In August 2007, just as the virtualization market was heating up, Citrix Systems announced its acquisition of XenSource for approximately $500 million. The deal was finalized in October 2007, and the XenSource team formed the core of a new virtualization division within Citrix.

Source: Dealroom company data

At a glance

Status
Acquired
Founded
2004
Headquarters
Palo Alto, United States
Open positions
None listed
Dealroom signal
19.0/100
Industry
Energy, Hosting
Sector
Energy, Infrastructure Services, Open Source, Virtualization, Data Analytics, Hard Tech
Client focus
b2b

Funding history

4 recorded events

Company financing events and reported valuations.

Deal typeDateAmountValuationInvestorsSource
ACQUISITION✓Exit Aug 2007 $500M $500M Citrix —
SERIES C✓Equity / VC Oct 2006 $15M $60M Radar Partners · Accel · Kleiner Perkins · Sevin Rosen Funds —
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Growth signals

XenSource website traffic

Latest recorded traffic for XenSource is 220 monthly website visits, down 18.5% over the last three months.

Latest monthly visits220 3-month web change-18.5%
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Similar companies

Closest operating peers by Dealroom taxonomy

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Investments and acquisitions

Capital deployed

Recent portfolio relationships for companies that also act as investors or acquirers.

Investors

8 investors on the cap table

From Dealroom's funding and investor records, grouped by the round each investor first entered.

Series A5 investors entered at this stage

Series B and later1 investor entered at this stage

  • Radar Partners

Other known investors2 additional known investors

  • Citrix
  • Presidio Ventures
Team profiled 9 named & role-tagged
Founders Hidden — book a demo/100 quality score
Key operators 4 quality Hidden — book a demo/100
Potential founders Hidden — book a demo likely future founders
Startup mafia Hidden — book a demo alumni-founded startups
Talent movements Hidden — book a demo in · Hidden — book a demo out past 12 months

Source: Dealroom Talent Intelligence.

Global footprint

Workforce and web traffic by country
Workforce by country
🇺🇸 United States · Palo Alto HQ
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Market sentiment

Posts on X, past 7 days

An AI-synthesised read of the highest-engagement posts about XenSource on X, ranked by likes and reposts, corporate channels excluded.

Reading the room on X — pulling top posts and synthesizing themes…

Source: X recent search ranked by engagement (likes + retweets) · Synthesis by Claude · Cached for 1 hour

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