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Oracle buys virtualisation software specialist Xsigo

Computing giant Oracle today announced that it has entered into an agreement to acquire network virtualisation specialist Xsigo Systems, venturing that the deal will help to further boost its cloud portfolio.

Oracle is thought to be particularly keen to bind its own server virtualisation with the smaller firm's networking capabilities. Xsigo is best known for its software-defined networking technology solutions, which help simplify cloud infrastructures by allowing customers to connect any server to any network or storage facility.

Terms of the deal were not disclosed. The two companies will operate independently until the deal is finalised in autumn 2012.

John Fowler, Oracle's Executive VP of Systems, claimed that recent accelerations in the world of virtualisation had made supporting network connections more vital than ever.

"The proliferation of virtualised servers in the last few years has made the virtualisation of the supporting network connections essential," he said.

"With Xsigo, customers can reduce the complexity and simplify management of their clouds by delivering computer, storage, and network resources that can be dynamically reallocated on-demand," he continued.

Xsigo's products have been deployed by a number of leading enterprises, including the likes of BT and eBay.

The deal continues Oracle's recent acquisition bender as it seeks to bolster its cloud and social media arsenal amidst increased competition in the enterprise solution market.

This July alone, the company announced buys for social media manager Involver and project management software firm Skire.

Last week, rival virtualisation software manufacturer VMware revealed a blockbuster $1.05 billion (£670m) deal for another software-defined networking space specialist, Nicira, following a recent high-level management reshuffle that saw ex-Apple guru (and former VMware chief) Paul Maritz head for a top strategy job at parent firm EMC.