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 $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.

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