Oracle Buys Pillar Data Systems

Posted on June 29, 2011 By Stuart J. Johnston

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In a move that should probably not be much of a surprise, Oracle announced Wednesday that it is buying out Pillar Data Systems, which was already majority owned by Oracle CEO Larry Ellison.

Privately held Pillar Data Systems provides highly scalable SAN Block I/O storage systems, a product area that will help fill in gaps in Oracle's (NASDAQ: ORCL) expanding line of storage products, according to company statements.

"Pillar's Axiom enterprise SAN storage platform combines exceptional performance scaling characteristics with patented quality of service," a presentation explaining the acquisition said.

Its products will complement Oracle's existing storage lines, including the Oracle Exadata Database I/O systems, Oracle ZFS NAS File I/O storage appliances, and Oracle StorageTek tape systems.

"The acquisition of Pillar Data Systems provides Oracle with a compelling SAN storage architecture that complements our core strengths," John Fowler, Oracle executive vice president of systems," said. "Customers can optimize the value of their Oracle applications, database, middleware and operating system software by running on Oracle's storage solutions."

Ten-year-old San Jose, Calif.-based Pillar claims to have about 600 customers in 24 countries.

Given Ellison's interest in Pillar, Oracle officials said that the deal was evaluated and negotiated by an independent committee of Oracle's board.

Actual terms of the deal, which is expected to close in July, were not disclosed other than to say no cash will be paid up front and that the acquisition will have no significant impact on the database giant's bottom line.

That's a far cry from when Oracle announced its purchase of Sun Microsystems in 2009, which cost Oracle some $7.4 billion.

Fowler and Oracle President, Mark Hurd, will host an Oracle Storage Strategy Update on Thursday, June 30.

The financial markets took news of the acquisition in stride. In mid-day trading, Oracle was up about a quarter of a percent, or approximately $0.08 per share.

Stuart J. Johnston is a contributing editor at InternetNews.com, the news service of Internet.com, the network for technology professionals. Follow him on Twitter @stuartj1000.

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