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Oracle apparently is gearing up for a virtualization play – Beware, Red Hat

Oracle making virtualization play?

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RALEIGH, N.C. — Red Hat’s move into the virtualization space may soon face even more competition than expected. But the hatters’ new nemesis in a new space is a familiar face – Oracle.

Katherine Egbert, a Jefferies & Company analyst who closely follows Red Hat, says Oracle is apparently getting ready to acquire Virtual Iron, a virtual server and tools maker.

Just as Red Hat (NYSE: RHT) makes peace with dreaded proprietary rival Microsoft on the virtualization front, Oracle’s Larry Ellison apparently is stepping into the battle for technology than enables servers and computers to run multiple operating systems.

Ellison has made no secret of his ill feelings toward Red Hat. Now he’s going after the open-source Linux software developer and solutions-provider on another front.

“Multiple industry sources seem to indicate that Oracle will soon improve its server virtualization management capabilities by purchasing privately held Virtual iron,” Egbert wrote in a report distributed early Monday.

Egbert doesn’t see Oracle having to spend huge dollars for Virtual Iron, but she still considers the move “strategic.”

“”It’s likely Oracle would buy Virtual Iron to improve its prospects in the rapidly growing server virtualization management market and to keep Virtual Iron technology out of competitive hands,” she wrote, noting that the company is the “fifth-largest server virtualization vendor.”

She also noted that Virtual Iron’s technology is “complementary to Oracle Virtual Machine” while also cheaper than market leader VMware.

Egbert lists Red Hat, Microsoft, VMware and Citrix as the “major incumbent” virtualization server players.

The big loser in an Oracle-Virtual iron deal would not be Red Hat, however, according to Egbert. She believes “VMware has the most to lose.”

The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…