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Azaleos Adds $10 Million

Azaleos Corp., a Seattle-based managed Microsoft Exchange and messaging company, has raised $10 million in Series C funding. Ignition Partners led the round, and was joined by return backer Second Avenue Partners.

Azaleos (R) Corporation (, the managed Microsoft Exchange and messaging company, today announced it has closed a $10 million Series C round of financing.  The round was led by Ignition Partners, with participation from existing investors including Second Avenue Partners.  Azaleos will use the funds to expand into Canada, Europe, South America and Asia, and for sales and marketing targeting the industry wide migration to Microsoft Exchange 2007. Following a 300 percent increase in revenues this year, the additional capital will enable the company to meet and support explosive customer demand for its managed messaging services.

“Our rapid market growth is being fueled by the desire of organizations to focus their IT resources on competitive initiatives and outsource the day-to-day management of their messaging infrastructure to a domain expert like Azaleos,” said Phil van Etten, chief executive officer of Azaleos. “This round of financing will allow us to scale our infrastructure and product development to meet market demand for our solutions and maintain exceptional levels of customer satisfaction.”

Former Microsoft CIO Joins Board
Azaleos also announced today that Rick Devenuti, former Microsoft Senior Vice President of Services and IT & CIO has joined the company's board of directors.  Prior to retiring from Microsoft earlier this year, Devenuti enjoyed a distinguished 19 year career with the company. As a director and strategic advisor, Devenuti's depth of experience in enterprise IT services and operations management will help guide Azaleos market and product strategy.
“Azaleos' unique approach to hosted messaging and Exchange management, strong customer traction among mid and large enterprises, and experienced management team have enabled the company to capture a significant share of this large and rapidly growing market,” said Rick Devenuti.  “The company is addressing the need for a set of managed messaging services with unique solutions that simplify Exchange deployments, yet do not force businesses to move email data out of their datacenter.”
Product and Partner Momentum
Unlike traditional vendors of hosted and managed services for Exchange that rely on an off-premise model, Azaleos allows companies to comfortably keep messaging data “at home,” while it remotely manages and monitors their messaging infrastructure. This approach has enabled Azaleos to establish a leadership position in the Managed Exchange market to provide service to the 150+ million users migrating from competitive email platforms and previous versions of Exchange Server to the new Exchange 2007 version over the course of the next year and a half.
In 2007 Azaleos has aggressively increased its market share and channel footprint. Some of the highlights include:
  —  Surpassed the 100 million messages delivered mark in October —
      Azaleos now handles an average of 300 thousand messages per day
  —  Added five new Fortune 1000 customers to its installed base
  —  Added two major new products to its portfolio:  MobileXchange(TM),
      which provides managed services for Blackberry Enterprise Server; and
      OneServer Virtual Edition which provides the Azaleos managed and
      clustered Exchange service on a virtual environment powered by
  —  Continued to add new customers leveraging its partnership with ACS
      (Affiliated Computer Services) and their Message One solution
  —  Tripled its reseller channel, primarily through a partnership with


“Azaleos has emerged as an exciting new challenger in the hosted Exchange messaging market, as the alignment of market demand fits perfectly with their outstanding product and service offerings,” said Fred Cuen, President, Avnet Technology Solutions, Americas.  “We look forward to continuing to apply our Avnet channel and reseller partner experience with the successful Azaleos end to end messaging solution to create strong, sustained growth for our partners in 2008 and beyond.”

About Azaleos
Azaleos Corporation provides on-premise 24X7 managed messaging solutions for enterprises that rely on Microsoft Exchange Server and Blackberry Enterprise Server. Azaleos OneServer and OneStop Services offer remote monitoring, server and mobile device management, maintenance, reporting, archiving and disaster recovery which free up an organization's IT staff and enable them to focus on building strategic technology initiatives. Azaleos solutions can be installed and up and running in less than one day. A Microsoft Gold Certified partner, Azaleos was founded in 2004 and is led by senior executives from Microsoft, IBM, and Lotus. For more information visit us on the Web at

About Ignition Partners
Ignition Partners, ( is a premier private investment group with offices in Bellevue, Washington and Shanghai China.  Its three categories of funds – early stage venture, growth capital and China ventures – brings together an unparalleled combination of domain focus, functional expertise and global operational experience with partners from leadership positions at Microsoft, McCaw Cellular Communications, AT&T Wireless, Cisco, Starbucks and other industry leaders.

About Second Avenue Partners
Second Avenue Partners, ( is a Seattle-based provider of management, strategy, and capital for early stage companies. The firm's venture fund is directed at emerging Internet businesses in the high-tech field. Second Avenue Partners investment approach is to make early-stage investments in promising ventures and build long-term relationships, actively assisting its portfolio companies in becoming market leaders.