Oracle has entered into an agreement to acquire Xsigo Systems, a leading provider of network virtualisation 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 virtualisation and Oracle VM for server virtualisation is expected to deliver a complete set of virtualisation capabilities for cloud environments.

“The proliferation of virtualised servers in the last few years has made the virtualization of the supporting network connections essential,” says 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 utilisation of their network,” says Lloyd Carney, CEO of Xsigo. “Virtualisation of these resources allows customers to scale compute and storage for their public and private clouds while matching network capacity as demand dictates.”