Software manufacturer Oracle has acquired network virtualization provider Xsigo Systems in an effort to boost its cloud capabilities.
Xsigo, based in San Jose, Calif., provides a system that connects to almost any network and provides customers with a way to adjust and increase performance operations while reducing costs through virtualizing services.
The company's tools will be merged with the Oracle VM server virtualization technology to build new cloud capabilities. Virtualizing resources allows customers to scale their computing and storage capabilities to meet network demands as they fluctuate, and it does this by running specialized software on existing machines instead of requiring new infrastructure.
Xsigo sells a product called Data Centre Fabric that virtualizes cards and connections, reducing the amount of physical hardware and cables required to run a network of machines. Xsigo's existing products have been used by companies like eBay, Verizon, and Softbank.
"The proliferation of virtualized servers in the last few years has made the virtualization of the supporting network connections essential," said John Fowler, Oracle's executive vice president of systems. "With Xsigo, customers can reduce the complexity and simplify management of their clouds by delivering compute, storage and network resources that can be dynamically reallocated on-demand."
Oracle has been one a cloud-purchasing drive, with recent acquisitions including cloud social media manager Involver, real estate management software maker Skire that has a cloud platform, cloud-based talent management company Taleo Corp., social marketing platform Virtue, and Collective Intellect.
The Xsigo transaction is expected to close this fall. The two companies will operate independently until the deal goes through. Once it does, the companies said they will jointly develop and deliver virtualization offerings for cloud environments.
Terms of the agreement were not disclosed. - Geoff Whiting