VMware Buys Virsto Software

Palo Alto-based VMware said Monday that it is in a definitive agreement to buy Virsto Software, a Sunnyvale-based developer of software for optimizing storage for virtual environments. Financial terms fo the deal were not announced. Virsto's storage management software helps optimize the I/O performance and patterns on block-based storage systems, for VMware's vmdk disk format. Virsto was venture backed by August Capital, Canaan Partners, Correlation Ventures, Interwest Partners, and Southern Cross Capital, and had raised around $25.3M in funding.