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Oracle Buys Piece of Mellanox

It bought 10.2% of the profitable-but-not-hysterically profitable publicly traded company’s ordinary shares

Told ya so. Told ya so. Told ya when Larry Ellison said, "You're going to see us buying chip companies" a few weeks ago he didn't mean AMD and that something like Mellanox Technologies was more up his alley if for no other reason than Mellanox is big in InfiniBand and Larry is big on InfiniBand.

According to him, "InfiniBand is by far the fastest and most efficient switch fabric for running enterprise data centers."

Well, rather than buy the joint, Oracle Wednesday said it bought 10.2% of the profitable-but-not-hysterically profitable publicly traded company's ordinary shares. It didn't say how much this "strategic investment" cost but Mellanox has a market cap of around $740 million.

Oracle naturally wants something from Mellanox, an old-time Sun familiar - which may simply come down to a competitive lead over Ethernet - and mumbled something about "aligning product vision and maximizing partnership efforts."

It said, "A strong and friendly relationship with Mellanox is critical to Oracle," because it leverages Mellanox' InfiniBand products to create differentiated Oracle solutions like Exadata and Exalogic.

It said Mellanox intends to make Solaris "a core supported operating system platform to help meet increasing customer demand."

It claimed the stake was "for investment purposes only, to solidify common interest in the future of InfiniBand" and that it "has no plan or intention to make an unsolicited and unfriendly offer to take over Mellanox." Interesting phrasing for a predator like Oracle.

Anyway, Mellanox will keep on supplying Dell, HP, IBM, et al to maximize the use of InfiniBand "as the preferred data center communications fabric."

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

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