Oracle Corporation announced that it has agreed to acquire Virtual Iron Software, Inc. (Virtual Iron), a provider of server virtualization management software that enables dynamic resource and capacity management in virtualized data centers.

The combination of Virtual Iron's technology and Oracle VM's server virtualization product is expected to provide more resource management across the full software stack, according to a statement from Oracle. Customers are expected to benefit from better capacity utilization, streamlined virtual server configuration, and improved visibility and control of their enterprise software.

"Industry trends are driving demand for virtualization as a way to reduce operating expenses and support green IT strategies without sacrificing quality of service," observes Wim Coekaerts, vice president of Linux and virtualization engineering for Oracle, in a statement released by the company. "With the addition of Virtual Iron, Oracle expects to enable customers to more dynamically manage their server capacity and optimize their power consumption. The acquisition is consistent with Oracle's strategy to provide comprehensive enterprise software management and will facilitate more efficient management of application service levels."

Virtual Iron is a provider of server virtualization management software and is known for its comprehensive and dynamic resource management functionality and ease of use. Like Oracle VM, Virtual Iron's hypervisor is based on Xen open source software. In addition, Virtual Iron employees are expected to join Oracle and bring domain expertise in operating systems and virtualization.

The transaction is subject to customary closing conditions and is expected to close this summer. Until the deal closes, each company will continue to operate independently. Financial details of the transaction were not disclosed.

For more details on the acquisition, go here.