Coming on the heels of VMware’s acquisition of Nicira, Oracle announced today that it is acquiring network virtualization vendor Xsigo Systems for an undisclosed amount. So now two shoes have dropped in the question of how networks will be designed and operated in the future (perhaps the entity in question is an octopus, and we have six shoes to go). Clearly the notion of software defined networks has legs and clearly VMware is not the only company who sees this.

The Oracle Announcement

Oracle Buys Xsigo

Extends Oracle’s Virtualization Capabilities with Leading Software-Defined Networking Technology for Cloud Environments

  • Oracle today announced that it has entered into an agreement to acquire Xsigo Systems, a leading provider of network virtualization technology.
  • Xsigo’s software-defined networking technology simplifies cloud infrastructure and operations by allowing customers to dynamically and flexibly connect any server to any network and storage, resulting in increased asset utilization and application performance while reducing cost.
  • The company’s products have been deployed at hundreds of enterprise customers including British Telecom, eBay, Softbank and Verizon.
  • The combination of Xsigo for network virtualization and Oracle VM for server virtualization is expected to deliver a complete set of virtualization capabilities for cloud environments.

Terms of the agreement were not disclosed. More information on this announcement can be found at oracle.com/xsigo.

Supporting Quotes

  • “The proliferation of virtualized servers in the last few years has made the virtualization of the supporting network connections essential,” said John Fowler, Oracle Executive Vice President of Systems. “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.”
  • “Customers are focused on reducing costs and improving utilization of their network,” said Lloyd Carney, Xsigo CEO. “Virtualization of these resources allows customers to scale compute and storage for their public and private clouds while matching network capacity as demand dictates.”

What Does This Mean?

The most disconcerting statement in the release is the part about the “combination of Xsigo and Oracle VM”. This means that Oracle is continuing to play its “vertically integrated solution stack” game, which is in direct contrast to the horizontally layered strategies that VMware, Microsoft, Red Hat, Citrix, the CloudStack community, and the OpenStack community are all pursuing. While this might be very appealing to a customer that is 100% or nearly 100% Oracle, the notion of jamming Oracle VM down the throat of a customer in order for them to get Xsigo is just another example of the foolishness of Oracle’s closed, proprietary and arrogant approach. This could not be more at odds with VMware’s notion of the Software Defined Data Center which is completely open with respect to the hardware layers underneath it and the workloads that run on it.

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Bernd Harzog (332 Posts)

Bernd Harzog is the Analyst at The Virtualization Practice for Performance and Capacity Management and IT as a Service (Private Cloud).

Bernd is also the CEO and founder of APM Experts a company that provides strategic marketing services to vendors in the virtualization performance management, and application performance management markets.

Prior to these two companies, Bernd was the CEO of RTO Software, the VP Products at Netuitive, a General Manager at Xcellenet, and Research Director for Systems Software at Gartner Group. Bernd has an MBA in Marketing from the University of Chicago.

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2 comments for “News: Oracle Buys Xsigo Systems

  1. Rob
    July 31, 2012 at 6:59 PM

    Just wonderful. Another site comparing Xsigo to SDN.

    Honestly, do you even know what Xsigo does? Saying that Xsigo is SDN is like comparing the Pony Express to email. You need to stop parroting press releases.

    From the Xsigo homepage before Oracle takes it down and writes what BS Larry tells them:

    Xsigo simplifies data center management by letting you dynamically connect any server to any network and storage. Reduce complexity by eliminating 70% of the cards, cables and switch ports, and get up to 112 Gbps bandwidth to each server for increased application performance. All at 50% less cost than traditional infrastructure.

    Here’s the bottom line:
    * Xsigo is about reducing interconnects and complexity. It’s hardware. The hardware is interesting and innovative, but niche. We looked at one, but the value prop just wasn’t there and the hardware isn’t cheap.

    * If you’re a Xsigo customer, you are screwed. Sorry, but you’ve just been purchased by the most insane CEO on earth who buys Hawaiian islands and boats. These things cost money and he believes that you are his personal ATM. (That’s putting it politely.) There are no Oracle customers, only Oracle hostages. You’re support costs are about to go up in a very big way and getting drivers updates is going to take easily twice as long.

  2. Bharzog
    August 6, 2012 at 11:47 AM

    Hi Rob,

    I did not equate Xsigo with SDN, Oracle did. It may not have been 100% clear, but when I put in the section “The Oracle Announcement” I thought it was clear that this was Oracle’s point of view not mine (in fact I just copied in the key bullet points of their release).

    My contribution to this is just in the “What does this Mean” section. As you can see I share a negative view of Oracle and their strategy with you (I think of them as the Darth Vader of the software industry). With respect to Xsigo and SDN, I agree that this is PR BS. You could make a case that Xsigo helps in a Software Defined Data Center play, but I also agree with you that it is too hardware intensive an approach to really provide the value that an OpenFlow controller can provide.

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