Microsoft to Buy DATAllegro

By Michelle Savage

July 25, 2008 — Microsoft today announced that it intends to buy DATAllegro, a provider of data warehouse appliances, and integrate the company’s hardware platform and software architecture into Microsoft SQL Server.

“The deal to acquire DATAllegro clearly demonstrates that Microsoft is serious about delivering an appliance-based SQL Server solution for data warehousing (DW) and business intelligence,” said Forrester analyst James Kobielus.

Because DATAllegro was one of the first-mover vendors in the DW appliance market, has a strong product and still holds considerable market share, he said, Microsoft will gain new visibility and immediate credibility in the DW market. And Microsoft can give DATAllegro what it has been missing as a small company: a worldwide sales, marketing and support organization.

Founded in 2003, DATAllegro specializes in large-volume, high-performance DWs, which can support some of the largest data volume capacities in the industry—up to hundreds of terabytes on a single system. With this purchase, Microsoft will be able to integrate support for shared nothing, massively parallel processing architecture into Microsoft SQL Server. Microsoft said that the purchase will make it easier and more cost-effective for customers of all sizes to manage and glean insight from its data.

Following the acquisition, Microsoft will retain most of DATAllegro’s employees as well as its headquarters in Aliso Viejo, Calif. DATAllegro will continue to develop its technology, which will be incorporated into the SQL Server product line in future releases. Microsoft did not disclose any other details of the deal.

Kobielus called this move “a key triggering event for the data warehousing industry as a whole,” as it will likely set the stage for a period of rapid data warehousing consolation. “Look for Oracle, SAP and HP, in particular, to make strategic acquisitions of the sort that Microsoft has just announced,” he added.

Related Search Term(s): databases, SQL Server DATAllegro, Microsoft

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Microsoft to Buy DATAllegro

By Michelle Savage

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