After receiving a $3 million Series A round of funding, Leostream seems to be making a few more changes within the company. Until recently, Leostream was customer-funded. And according to the company, the decision to raise a relatively small round of funding was to grow the sales and marketing function, particularly outside the United States since more than half of the company's revenue comes from outside the US After receiving a $3 million Series A round of funding, Leostream seems to be making a few more changes within the company. Until recently, Leostream was customer-funded. And according to the company, the decision to raise a relatively small round of funding was to grow the sales and marketing function, particularly outside the United States since more than half of the company’s revenue comes from outside the US. When I initially covered the funding round announcement earlier in May, I mentioned that the company used to provide their own virtualization management solution. Now, that product is gone. And for a time, Leostream focused on the P2V market as more and more people getting into the virtualization game wanted a way to migrate their physical servers into a virtual environment. However, since the funding announcement, I noticed that Leostream has removed their P>V Direct product from the company Web site, and now it seems to solely focus on their VDI connection broker product instead.David Crosbie, Leostream founder and CTO, told me the Leostream P>V product will continue to be supported for existing customers; however, new trials and licenses for the product will not be made available. Crosbie also said the old VMC product is what evolved into Connection Broker. They believe the new product name more accurately reflects what the product does. Keeping in line with its virtualization pioneer roots, Leostream quickly helped create a market for the hosted desktop with its Connection Broker. And like any good market, competition entered to challenge Leostream for market share. Some of those competitors have been acquired, and now both VMware and Citrix have their own connection broker products. VMware and Citrix are both active partners with Leostream and, according to the company, they are working on a number of large projects with their partners.Crosbie said, “Leostream is 100 percent committed to the Connection Broker. We have about 100 customers, including Bell Canada, Avaya, The Mayo Clinic, and Samsung, using Connection Broker for large-scale deployments. We have 80-plus channel partners. We bring out new major releases every 12 months (version 4.x is still widely used in the field). Version 6.0 will be released later this year.” He added, “We plan to leverage this excellent product and strong customer base into a position as the leading independent Connection Broker — one that manages all significant technologies for delivering Hosted Desktops.” Leostream is happy to have found a great partner in the Meakem Becker VC firm, and the company is looking forward to being able to focus on their core product, Connection Broker. And with it being a growing and crowded space, focus is probably a really good thing for them at this point to make sure they can differentiate and continue to innovate. Software Development