Microsoft Acquires Datallegro

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Microsoft announced today that they have acquired data warehousing application provider Datallegro for an undisclosed amount. The acquisition was run out of the Data and Storage Platform division at Microsoft, with an intention to integrate the Datallegro application into Microsoft SQL Server and the data application suite.

Microsoft are rapidly building out their data services offerings and have made a number of acquisitions as part of their strategy to compete in the enterprise market. Microsoft recently also acquired Zoomix, an Israeli company that provides automated data intelligence. The data and storage division at Microsoft is growing rapidly, and with the upcoming release of Microsoft SQL Server 2008 and an agressive marketing push they should be able to steadily chip away market share from Oracle in the enterprise market.

Datallegro was founded in 2003 by Stuart Frost and Mark Thacker in California. They just raised 19.6 million dollars in their D round in May. The round was led by an affiliate of the Hillman Company, with Adams Capital management, Focus Ventures, Intel Capital, JAFCO Ventures, Palomar Ventures and Venrock Associates joining.

  • Nima Negahban

    Interesting. Wonder if they’re going to buy Vertica next or I wonder why they didn’t buy Vertica. Both of these companies have extensive experience in parallel db’s. If you read the fine print behind SQL 2008 you will see that they are working very hard to build in some very interesting scaling functionality.

  • mark madsen

    They didn’t buy Vertica, Paraccel or any of the other vendors because those vendors have tight integration with the database kernel, and because in some cases the technology is incompatible, e.g. these two are columnar storage so the optimization and indexing techniques are not going to be the same.

    Datallegro doesn’t appear to have extensive experience in parallel databases. They built something akin to a federation layer on top of the database, making it easier to port to SQLServer. With a very small customer base relative to the other vendors, one has to question their approach vs. tight database integration, since every other vendor on the market does that. It’s more likely that you do need this, and the layer doesn’t work so well. So MSFT bought something in order to make a move inthe DB market and put pressure on competitors, without having to worry about releasing something workable in the short term.

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