Oracle's (ORCL) Network Virtualization Acquisition Pressues VMWare (VMW) and Peers (RHT) (CTXS)

July 30, 2012 9:21 AM EDT Send to a Friend
Oracle (Nasdaq: ORCL) shares are lower Monday following the announcement earlier it has acquired network virtualization technology provider Xsigo Systems.

Following the announcement, VMWare (NYSE: VMW) is seeing some pressure. Last week, VMWare announced it entered an agreement to acquire Nicira, Inc. for $1.05 billion in cash plus approximately $210 million of assumed unvested equity awards. Nicira offers network virtualization products like Open vSwitch (OVS) and NVP Controller.

Nicira is expected to bolster to VMWare's offerings, which currently include: vSphere virtual switching, VMware vCloud Director networking, vShield Network, and Security software defined services.

VMWare virtualization peers on watch include: LogMeIn, Inc. (Nasdaq: LOGM), Amazon (Nasdaq: AMZN) (which has its EC2), Microsoft (Nasdaq: MSFT) (which offers Azure), and Red Hat (NYSE: RHT).


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