"While Joyent has been profitable for much of the company’s existence, we raised money because Joyent has a revenue model, and a product model and roadmap, that we believe can benefit from immensely increased scale. Joyent plans to take cloud computing to a place where our competitors, built on virtualization foundations such as VMWare ESX, Microsoft HyperV, XEN, KVM, won’t be able to go."

via Blog Joyent | Joyent Raises Institutional Money: Why We Did It.