Oracle acquires Xsigo

On Monday Oracle announced its plan to buy privately held Xsigo, a company based in California and specialized in virtual networking.

The company, founded eight years ago, backed by Kleiner Perkins, Caufield Byers, Greylock Partners, North Bridge Venture Partners and Khosla Ventures, has BritishTelecom, eBay, Softbank  and Verizon Communications Inc. among its customers.

Oracle did not disclose the terms of the agreement.

This news is strictly related to the acquisition of Nicira Inc., announced last week by VMware, for $1.26 billions to expand its portfolio and establish a leadership position in virtual networks.

The proliferation of virtualized servers in the last few years has made the virtualization of the supporting network connections essential. 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.

said John Fowler, Oracle Executive Vice President of Systems.

Customers are focused on reducing costs and improving utilization of their network. Virtualization of these resources allows customers to scale compute and storage for their public and private clouds while matching network capacity as demand dictates.

said Lloyd Carney, Xsigo CEO.