July 30, 2012

Oracle Makes Sixth Acquisition This Year With Purchase Of Xsigo

Peter Suciu for - Your Universe Online

To some self-help gurus, the first step in making something a reality is to visualize it. Oracle, which has made several acquisitions this year, needed little help in making recent deals come to fruition. But if the company needs help in the virtualization — rather than visualization — sector, it is now set.

On Monday Oracle announced that it had acquired network virtualization provider Xisigo Systems for an undisclosed sum. This brings the tally of Oracle acquisitions to six this year, following the purchases of Skire, Involver, Taleo, Vitrue, and Collective Intellect.

The purchase of San Jose-based Xsigo is likely part of Oracle´s efforts to boost its cloud capabilities, as the start-up´s technology connects any server to any network. This provides customers with an ability to increase performance options whilst keeping user costs low through the reallocation of compute, storage and network resources. Xsigo´s tools will now be merged with Oracle VM server virtualizations technology to build new cloud capabilities.

“The proliferation of virtualized servers in the last few years has made the virtualization of the supporting network connections essential,” said John Fowler, Oracle Executive Vice President of Systems in a statement. “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.”

Xsigo´s software-focused networking products have been deployed to date to hundreds of enterprise customers including British Telecom, eBay, Softbank and Verizon.

“Customers are focused on reducing costs and improving utilization of their network,” said Lloyd Carney, Xsigo CEO in a statement. “Virtualization of these resources allows customers to scale compute and storage for their public and private clouds while matching network capacity as demand dictates.”

The transaction is expect to be completed this fall, and until that time the two companies will continue to operate independently.

This acquisition follows Oracle´s purchase of social media manager Involver earlier this month. Oracle reportedly hopes to build on its social media presence in its cloud, while further looking to increase brand loyalty by connecting customers with buyer´s needs.

In addition Oracle also recently acquired Skire Inc., a real estate management software maker, along with cloud-based talent management company Taleo Corporation, social marketing platform Virtue, and Collective Intellect.

Oracle is not the only company that has made a string of purchases this year, rival virtualization technology software company VMware purchased networking start-up Nicira for $1.26 billion reported All Things D, and Facebook has made a string of high-profile purchases this year.

However, Oracle´s wave of purchases came as the company battled Google in the courts. Oracle was looking for $6 billion in damages, and according to online reports ended up owing Google $4 million for legal expenses.

And this weekend, Oracle pulled a national ad campaign at the request of the Better Business Bureau National Advertising Division. A full page Oracle ad in the Wall Street Journal noted “Giant European Retailer Moves Databases From IBM Power to Exadata“¦Runs 20 Times Faster.” IBM challenged the ad and filed a complaint that argued that the “20x Faster” claim makes overly broad references. Oracle complied and pulled the ad.

Maybe buying companies is like Oracle´s way of shopping when its depressed.