Oracle has agreed to acquire virtual networking company Xsigo Systems. The software giant announced the deal on Monday, but terms of the deal were not disclosed.

Although comparisons with VMware’s US$1.26 billion acquisition of Nicira are inevitable, Xsigo actually makes a very different type of product. Whereas Nicira offers a tool that lets you build entire computer networks using nothing but software, Xsigo sells a simpler product called Data Centre Fabric (DCF), which is specifically designed to virtualize network cards and connections, reducing the amount of physical hardware and network cabling required to run a network of virtual machines.

Source: Wired