Xtium raises $11.5M to expand pay-as-you-grow virtual private cloud services

Major cloud computing services provider Xtium has raised $11.5 million to expand its reach in helping mid-size companies with private cloud computing, virtual hosting and virtual disaster recovery.

Xtium is one of the leading infrastructure-as-a-service (IaaS) providers in the U.S., but it has to compete with major players like Amazon and IBM. The company offers as pay-as-you-grow model to businesses that allows for more flexibility when companies need back-end solutions like virtualization, servers and storage. Xtium said it often attracts customers with its “cloud disaster recovery service” and then eases them into further services after they like what they see.

The company plans to use its new capital for expansion, hiring more employees and further investing in its cloud technologies.

“Xtium is having another strong growth year and we are excited to continue building for aggressive execution,” said Peter Ritz, president of Xtium, in a statement. “Scores of mid-market enterprise customers have chosen Xtium to migrate and manage their cloud and network, as we provide everything they need to plan, migrate, and manage their systems and network at a significantly lower cost and higher service level than their current model.”

Valley Forge, Penn.-based Xtium was founded in 2004 and started managing cloud customers in 2007. Its first round of funding was led by OpenView Venture Partners, a Boston-based firm that has backed startups such as Mashery, Monetate, nextdocs, Skytap, Balihoo and Instructure.