July 30 Software maker Oracle Corp said
it would buy privately held Xsigo Systems, a network
virtualization software maker.
San Jose, California-based Xsigo's software helps customers
save costs by allowing them to connect any server to any
The eight-year-old company, backed by Kleiner Perkins and
Khosla Ventures, counts British Telecom Plc, eBay Inc
and Verizon Communication Inc among its
"The acquisition is a testament to the momentum behind
software-defined networking and network virtualization
technology and a sense of urgency among large IT vendors to
position themselves following VMware Inc's acquisition
of Nicira," ISI Group analyst Brian Marshall said.
VMware last week said it would acquire privately held Nicira
Inc for $1.05 billion in cash to expand its portfolio and
establish a leading position in virtualized networks.
Oracle did not disclose the terms of the deal.
Evercore Partners advised Xsigo Systems on the deal.
Earlier this month, Oracle bought software maker Skire Inc
for an undisclosed amount.