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January 26, 2006
Edgeware versus Broadbus
versus 
Boxborough, Mass-based Broadbus has a new rival in the form of Stockholm-based Edgeware AB, a developer of video servers for broadband networks, which has just raised 25 million SEK ($ 3 mln) from Swedish early stage investor Creandum.
Both are developing video servers to deliver video-on-demand over cable and telephone networks to broadband Internet subscribers. Their main point of differentiation is the storage technology used. All video servers contain some kind of storage, either a hard drive or solid state memory chips.
These two both use memory chips. Edgeware uses NAND (Flash) and Broadbus uses DRAM. According Joachim Roos, CEO and co-founder of Edgeware, NAND is cheaper and the price “erosion” is faster than DRAM, which means his costs are lower.
Broadbus was founded in 1999 and has raised about 20 times more capital. It has a prototype and is apparently running trials with telcos and cable TV operators.
Edgeware was founded in 2004, was bootstrapped until now, and is about 8 months away from running trials with telcos and cableTV operators.
The three founders of Edgeware hail from Xelerated (Roos was a co-founder and still has shares in the company), a metro Ethernet networking equipment maker, which received a large round of VC from Accel and Amadeus last year. This is the third venture the three have worked together on. Roos says they are not rich yet.
So we are thinking these hungry Swedish entrepreneurs with their fortunes yet to made, who have worked with telcos before and know about the long sales cycles and grueling trials, and who have demonstrated that they are capital efficient, just might give Broadbus a run for its money.
UPDATE: Broadbus makes solid state VOD strides
Posted on January 26, 2006 04:39 PM | Posted to Hardware | Venture Capital | Permalink
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