Oracle kills Virtual Iron brand, fires all employees but 10

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Five weeks ago Oracle announced the acquisition of Virtual Iron for an undisclosed sum. So far the company didn’t reveal if and how it plans to to merge the Virtual Iron hypervisor with the Sun xVM hypervisor and with its own Oracle VM Server.
Now finally the database giant starts to unveil its strategy.

The Register has just broken the news about an official communication released by Oracle to the Virtual Iron partners:

…In a letter to Virtual Iron’s sales partners, Oracle says it “will suspend development of existing Virtual Iron products and will suspend delivery of orders to new customers.” And in a second letter to a partner speaking with The Reg, the company says it will not allow partners to sell new licenses to anyone – including existing customers – after the end of this month (i.e. in 11 days). Before then, partners can only sell licenses to existing customers under certain conditions.

When the integrated product becomes generally available, Virtual Iron customers will be able to move to the new, integrated product and benefit from a more feature rich-solution than is available today…

The Register also unveils that the Virtual Iron company has been almost completely fired:

…In its letter, the company says “Oracle has retained Virtual Iron support personnel, so the same people who provided support prior to the acquisition will continue to do so going forward.” But our source says the company has let go all but about ten people from VI’s staff, and that two are on temporary contracts…

Now we have to wait and see if Sun xVM business unit will suffer the same destiny.