Earlier this week, Oracle Inc. announced that a deal was in place to purchase Xsigo Systems. While the terms of the deal remain disclosed, analysts believe it was a pretty big buy, even for Oracle’s standards. Here we’ll take a closer look at this deal and reveal how it could affect Oracle in the years to come.
About Xsigo Systems
Xsigo Systems is a supplier of software defined networking (SDN) technology. While the company has many areas of expertise, one of their greatest accomplishments is a product which vitalized network cards and connections, therefore reducing the hardware necessary for a virtual network of devices to work. To better understand how this works, let me break it down for you – basically, companies store heavy loads of data on processing off-site machines known as virtual servers. In order to access that data, a connection is made to the virtual server where it’s downloaded. The product designed by Xsigo Systems is intended to reduce the amount of time necessary for those downloads to complete.
Many companies have tried to achieve what Xsigo has done but non were as successful. One of the reasons why Xsigo System’s product works so well is because it reduces the amount of physical hardware (cables, adapters, etc.) necessary for a virtual network.
Why Oracle Purchased Xsigo
If you’ve kept up with news in the IT industry, you may have noticed a sudden shift towards cloud computing and networking. No one knows for sure what Oracle’s intentions are with Xsigo Systems, but many analysts believe its to strengthen their presence and expertise in cloud computing. Currently, Xsigo Systems has over 300 big-name clients whom they offer cloud computing and other data services to. If Oracle were to get a piece of this pie, it could certainly boost the company’s ability to provide cloud-based services.
What The Future Holds For Xsigo and Oracle
No one knows for sure how this deal will affect the on-goings of Xsigo Systems. Whether they’re fully work under the control of Oracle or continue on their own path remains to be told. However, we have been seeing a lot of cloud-based acquisitions made Oracle this year, which could be a sign they’re trying to improve the company’s footing in this new industry. Personally, I think it’s a wise business strategy, as more and more companies are looking for cloud computing. Besides, Oracle has the necessary funds to purchase these companies, so why not?
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