Market Overview

Oracle Continues Buying Spree, Purchases Xsigo

Oracle Continues Buying Spree, Purchases Xsigo

Software Maker Oracle Corporation (NASDAQ: ORCL) announced it has purchased San Jose, California-based Xsigo Systems, a top provider in network virtualization technology software. The terms of the agreement were not disclosed.

Xsigo's software is used to simplify cloud infrastructure and operations. The technology allows customers the ability to connect with any server to any network and storage.

The eight-year-old privately held company is backed by Kleiner Perkins and Khosla Ventures. Top customers include British Telecom (NYSE: BT), eBay (NASDAQ: EBAY), Verizon (NYSE: VZ) and Softbank. Xsigo provides an increase in asset utilization and application performance resulting in reduced costs.

Oracle's Executive Vice President of Systems stated, "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."

Oracle wants to combine their server technology with Xsigo's virtualization capabilities for cloud environments. CEO of Xsigo, Lloyd Carney believes, "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."

For Oracle, the focus is on reducing both their costs and addressing the costs of their customers. This allows the software giant to compete in the growing virtual server and support network.

From Xsigo's perspective, Carney points out, "Virtualization of these resources allows customers to scale compute and storage for their public and private clouds while matching network capacity as demand dictates."

On July 19, Oracle announced it had entered into agreement with Skire, a software manufacturer which provides capital program management and facilities management applications available on the cloud and on-premise.

With these two recent acquisitions, Oracle wants to improve profitability and operational efficiency. The deal is scheduled to be finalized in the second half of the year.

Oracle and Xsigo will continue to operate as independent entities until the transaction closes this fall.

Oracle traded down a little less than one percent early on Monday.

Posted-In: News M&A Movers Best of Benzinga

 

Related Articles (EBAY + BT)

Around the Web, We're Loving...

Get Benzinga's Newsletters