The startup, Nvelo Inc., was part of Denali until the IP house was acquired by EDA provider Cadence Design Systems Inc. six weeks ago. Following this acquisition the group has been made into a new, independent company.

This group has been developing a software storage technology within Denali since 2007, revealed sources at the California based Nvelo.

The startup has investors like Cadence and Denali and operates with 15 employees. Sources say that Nvelo is in the process of rolling out its first product, which claims to bring new intelligence into storage subsystems and break the I/O bottleneck in today's computing systems. Called Dataplex, the product is reportedly a new software product that increases the overall performance of the computer by using a small SSD as a high-performance 'cache' for existing HDD. Dataplex enables SSD performance across the full storage capacity of a HDD and gives this at a fraction of the cost of a full-sized SSD, say the sources at the company.