In mid-March the Wall Street Journal broke the news about an ongoing acquisition discussion between IBM and Sun. The deal never happened and IBM walked away retiring a $7 billion offering.
At this point Oracle jumped in and acquired Sun for $7.4 billion.
For the virtualization industry this is a very interesting move.
Sun is finalizing an entire virtualization portfolio, the xVM family, that includes a much delayed hypervisor based on Xen (Server), an enterprise management solution (Ops Center), a connection broker (VDI) and even a desktop virtualization solution (VirtualBox).
On its end, Oracle announced its own virtual infrastructure in November 2007, which includes a Xen-based hypervisor (VM Server) available free of charge and an enterprise management solution (VM Manager).
So far Oracle kept a low profile and didn’t seriously push its presence in the virtualization market, at the point that most people believe that Oracle VM is just for Oracle workloads. But the company strategy is very different: the database vendor wants to become a fully accredited virtualization vendor and compete with its former partner VMware.






