Quick Take: Oracle to Buy Virtual Iron

May 14, 2009

Oracle extended its spring buying spree by announcing the purchase of Virtual Iron Software, Inc (Virtual Iron) on May 13, 2009. Citing Virtual Iron’s “dynamic resource and capacity management” capabilities as the reason in their press release, Oracle intends to fill gaps in its Xen-based Oracle VM product (available as a free download).

Ironically, Virtual Iron’s product focus is SMB. According to a Butler Group technology audit, Virtual Iron “has one limitation that [they] believe will impact potential customers: the management console currently can only manage 120 nodes.” However, Virtual Iron’s “VI-Center” – the management piece cited as the main value proposition by Butler and Oracle – is based on a client-server Java application, making it a “good fit” with the recent Oracle acquisition of Sun Microsystems.

Oracle has not announced plans for Virtual Iron, pending the conclusion of the deal. Oracle’s leading comment:

“Industry trends are driving demand for virtualization as a way to reduce operating expenses and support green IT strategies without sacrificing quality of service,” said Wim Coekaerts, Oracle Vice President of Linux and Virtualization Engineering. “With the addition of Virtual Iron, Oracle expects to enable customers to more dynamically manage their server capacity and optimize their power consumption. The acquisition is consistent with Oracle’s strategy to provide comprehensive enterprise software management and will facilitate more efficient management of application service levels.”

SOLORI’s take: If the deal goes through, Oracle has found an immediate job for its newly acquired Sun Java engineers – getting VI-Cener ready for enterprise computing. Currently, Oracle VM is a “barebones” product with very little value beyond its intrinsic functionality. With the acquisition of Virtual Iron and its management piece, Oracle/Sun could produce a self-sufficient virtualization eco-system with OracleVM augmented by Virtual Iron, Sun Storage, choice of Oracle or MySQL databases, and commodity (or Sun) hardware – all vetted for Oracle’s application stack.

Virtual Iron was supposedly working on Hyper-V and KVM (RedHat’s choice of virtualization) management features. Though we doubt that Oracle VM will evolve into a truly “virtualization agnostic” product, the promise of such a capability is the stuff of “cloud computing.” Sun’s VDI and xVM server group will have a lot of work to do this summer…

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