Linux Networx closed on a $40 million funding Thursday and unveiled a new scalable storage system engineered for use with its Linux Networx computing systems.

Both developments will help the firm move into commercial markets with its clustering systems. To date, most of Linux Networx' systems have been targeted at large government agencies and companies with heavy consolidated computational needs.

"The Xilo storage system is significant, because we can now go after high-performance (applications) with mid-range prices," said Andrea Bingham, company spokeswoman. "The new trend we're seeing is a move into clustering for commercial applications."

The Xilo scalable storage system comes in a package combining storage devices and management software.

With Xilo, all storage devices in a Linux Networx installation are controlled from a single interface, the firm said. That translates into a simple storage sub-system that is easy to use and enhance with the added benefit of its feature enabling easy upgrading of embedded file and operating systems.

Bingham noted that the firm's practice of first assembling its cluster systems in-house to test them out before customer installation is helping in the campaign to move more aggressively into commercial markets. "We'll continue to build systems in-house first, then take them apart and send them to customer sites," she said.

In announcing Xilo, the firm said the data storage system will continue to support Cluster File Systems' Lustre, which enables customers to scale to thousands of computer nodes and petabytes of capacity.

Linux Networx assembles its clusters from off-the-shelf components including processors from Advanced Micro Devices and Intel. Linux operating system software is at the heart of all installations.

Linux Networx, which is privately held, will use the $40 million in new equity financing to fund its expansion both in product expansion and in increasing its presence in overseas markets.

Oak Investment Partners led the new round of financing and Ed Glassmeyer, Oak's founding general partner will join the firm's board of directors.