Basically, they have created a "software chassis" for VM images to rolled on-demand. The company maintains libraries of components and customers may add their own proprietary components to the library (for their use only) and construct the image of a virtual application stack. The resulting images are built, encapsulated, given a unique identity and injected with management and integration services.
For example you can quickly create a VM image of Mule with a variety of accessories and run it locally or on EC2.
Now that they have been named one of InfoWorld's top 10 tech startups, I suspect you'll start seeing more of CFT.