Posts Tagged ‘acquisition’


Quick Take: Oracle, Sun and Virtual Iron Redux

July 6, 2009

In May, 2009, we presented a Quick Take on the acquisition of Virtual Iron – a company that developed and delivered Xen manager to alternative to Citrix. While Oracle has officially killed the “product” that was Virtual Iron, it has released a roadmap to its incorporation into Oracle’s own OracleVM product: a virtualization platform targeted at enterprises using Oracle products and offered for free (via support model.)

What does this mean for Virtual Iron subscribers? Last month, Oracle stopped providing new licenses for Virtual Iron and released Oracle VM 2.1.5, but Virtual Iron represented less that 1% of the virtualization market. According to Oracle’s Virtual Iron employees (reportedly about 15 in total) are expected to continue with the company – perhaps to shore-up Oracle’s VM Management Pack with the addition of Virtual Iron’ expertise.

While it is unclear when Virtual Iron additions will show-up in Oracle VM, it is clear that customers relying on Virtual Iron will either migrate to an improved Oracle VM or switch vendors altogether. It is also clear that with better virtualization management on the horizon for Oracle VM, Oracle will entrench itself behind Oracle VM for support of Oracle applications in virtual environments. While this makes sense, given the “free” status of Oracle VM and its close ties to Oracle support, it limits enterprise deployment options and cloud-based strategies for Oracle products.

SOLORI’s take: What does this mean for the rest of the market? Oracle’s acquisition or Sun and Virtual Iron show that chosing a virtualization suite from smaller players can be risky. Unless your solution is delivered by the open source leader, the enterprise virtualization leader or “embedded” in the leading server operating system, your solution is at risk in any future technology acquisition. Likewise, Oracle’s position clearly demonstrates a closed eco-system of applications and support: eschewing the general purpose hypervisor suite for a tailor-made application stack for Oracle-only products.

In our original Quick Take on the subject, we predicted that Oracle’s would concentrate on its self-sufficiency needs and show little interest in the “forward thinking” applications of VI-Center’s encorporation of Hyper-V and KVM. With the removal of Virtual Iron and Sun xVM from the market, the likelihood of a new virtualization technology hitting the market is about 0%. In 12 months time, we expect to see only three players in enterprise virtualization: VMware, Microsoft and Red Hat.


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…


Sun Finds a Buyer in Oracle

April 21, 2009

Sun and Oracle have come to terms on a $7.4B cash deal. Oracle’s Ellison rejected a similar deal in 2003 due to bad timing and a PeopleSoft acquisition. Says Sun’s post:

“Sun and Oracle today announced a definitive agreement for Oracle to acquire Sun for $9.50 per share in cash. The Sun Board of Directors has unanimously approved the transaction. It is anticipated to close this summer.”

“The acquisition of Sun transforms the IT industry, combining best-in-class enterprise software and mission-critical computing systems,” said Oracle CEO Larry Ellison. “Oracle will be the only company that can engineer an integrated system – applications to disk – where all the pieces fit and work together so customers do not have to do it themselves. Our customers benefit as their systems integration costs go down while system performance, reliability and security go up.”

Oracle’s press release mirror’s Sun’s: Read the rest of this entry ?