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Oracle Gets More Virtual by Buying Xsigo

Craig Matsumoto
7/30/2012

Oracle Corp. (Nasdaq: ORCL) announced Monday that it's acquiring Xsigo Systems Inc. , a network virtualization company, for an undisclosed sum.

Xsigo's realm has been the cloud. Its Virtual I/O allows any server to run any application. And its Server Fabric handles networking between servers -- east/west connections, as they're called -- without using the actual network. Server Fabric competes with the network fabrics being proposed by many networking companies, particularly Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (NYSE: JNPR).

Oracle says it will combine Xsigo's network virtualization with Oracle's own Oracle VM for server virtualization. It seems obvious that Oracle would also use Xsigo in conjunction with cloud products such as the Exalogic Elastic Cloud (a "cloud-in-a-box" kind of platform).

The deal is expected to close in the fall.

Why this matters
Competition is heating up in the vague and relatively new field of network virtualization. VMware Inc. (NYSE: VMW), through its pending acquisition of Nicira Networks Inc. , appears to be getting closer to competing with Cisco, and now Oracle has taken a step toward competing with both of them in the data center.

There was a lot of hardware involved in Xsigo's first products, which came out in 2007. But the company can be lumped into the software-defined networking (SDN) craze, as its products let network operators create pools of server or networking resources within the cloud.

If you haven't heard of Xsigo, be aware that it's got a pedigree. Its founders came from Juniper and early on, former Oracle executive Ray Lane was on its board. Early investors included Kleiner Perkins Caufield & Byers , Greylock Partners , Khosla Ventures and Juniper.

For more



— Craig Matsumoto, Managing Editor, Light Reading

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Pete Baldwin
Pete Baldwin
12/5/2012 | 5:25:35 PM
re: Oracle Gets More Virtual by Buying Xsigo


Xsigo claims to have 300 customers including some service providers -- BT, Verizon, the former Qwest. They're probably using it in clouds and for their internal networks.


Interesting to see Oracle get more involved in networking. Big changes are afoot.

digits
digits
12/5/2012 | 5:25:34 PM
re: Oracle Gets More Virtual by Buying Xsigo


So Juniper had invested - I wonder if this means there will be some sort of tie-up between Oracle and Juniper post-acquisition?

BigBro
BigBro
12/5/2012 | 5:25:33 PM
re: Oracle Gets More Virtual by Buying Xsigo


So it looks like Oracle is doubling down on Infiniband. They already own 10% of Mellanox.


Maybe this is what was behind last week's rumors that Mellanox turned down a $6B offer from "IBM and/or ORCL".


I wonder if Xsigo was "Plan B", or the rumor mongers incorrectly translated "Oracle is buying an Infiniband vendor" to "Oracle is buying Mellanox"?


 

Bob Saccamano
Bob Saccamano
12/5/2012 | 5:25:31 PM
re: Oracle Gets More Virtual by Buying Xsigo


Tie up between Oracle and Juniper?  Won't this make Oracle a competitor to QFabric?  I'm not following the model you have in mind.

Pete Baldwin
Pete Baldwin
12/5/2012 | 5:25:31 PM
re: Oracle Gets More Virtual by Buying Xsigo


> I wonder if Xsigo was "Plan B", or the rumor mongers incorrectly translated "Oracle is buying an Infiniband vendor" to "Oracle is buying Mellanox"?


That's a good question. I hadn't seen the Oracle/Mellanox rumor.


digits
digits
12/5/2012 | 5:25:30 PM
re: Oracle Gets More Virtual by Buying Xsigo


Hi Bob


I didn't have a model in mind - I was thinking out loud, just asking a question because Juniper clearly saw something in Xsigo that it liked/wanted to manage/track. 


Your post raises some interesting points!


Tks


Ray

torivar
torivar
12/5/2012 | 5:25:29 PM
re: Oracle Gets More Virtual by Buying Xsigo


It's interesting because it gives Xsigo some clout where they didn't have any before because of being such a small company.   They also went the route of adopting 10GE as a fabric option along with Infiniband which was probably a smart move.   We are starting to see 40GE NICs where Infiband starts losing its benefits even at 56Gbps.  


It's a nice solution because it gives Cisco UCS type control over virtual adapters/etc. without being tied to one server/network vendor (until actual standards are supported).  


Their density is still an issue imho and they have no solution for 10GBaseT.  

patentchoi
patentchoi
12/5/2012 | 5:25:20 PM
re: Oracle Gets More Virtual by Buying Xsigo


This is an interesting buy. The technology may not be a big differentiator in the long term but the key is whether Oracle can use the team to develop newer high speed interconnects. If a competitive product based on Ethernet/TRILL/IP/MPLS/... one of the more typical networking encaps is made this could provide some headaches to the likes of Cisco and Juniper.


Calling this SDN is probably just hype.

BigBro
BigBro
12/5/2012 | 5:22:55 PM
re: Oracle Gets More Virtual by Buying Xsigo


"Juniper clearly saw something in Xsigo that it liked/wanted to manage/track."


Keep in mind that the Xsigo founders were previously at Juniper:


http://en.wikipedia.org/wiki/X...


 

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