Microsoft Buys DATAllegro

During Microsoft's annual Financial Analysts Meeting today, Bob Muglia, senior veep of the Server and Tools business, said that DATAllegro "will move on to the SQL Server and Windows Server platforms." Bob emphasized that the database company's technology will allow Microsoft storage products to handle hundreds of terabytes of data and "scale well beyond what Oracle can do today."

In a blog post, Forrester Research analyst James Kobielus described the acquisition as a "smart move for both vendors."

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His view on the deal:

"What the DATAllegro acquisition buys Microsoft is new visibility and credibility in the DW market. DATAllegro was one of the first-mover vendors in the DW appliance market, and, though it has largely been out-developed, out-marketed, and out-sold by Netezza in this segment, still has considerable mind share (though not much market share outside some high-end enterprise banner accounts)."

The acquisition comes as Microsoft puts the finishing touches on SQL Server 2008, which is expected to release to manufacturing before mid-September.

James predicted that Microsoft's DATAllegro acquisition would lead to consolidation in the data warehousing market. He writes:

"Over the coming year, Forrester expects incumbent enterprise DW (EDW) vendors—or those who aspire to that status—to acquire any of the growing number of DW-appliance pure-plays on the market. We expect many EDW incumbents to acquire DW appliance pure-plays, both to scale and accelerate their existing solution portfolios, and also to address the growing midmarket for cost-effective modular solutions."

Apologies, my post is brief, as I am covering Microsoft's annual analyst meeting today.

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