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Hardware - Friday, July 25, 2008

MSFT Gets Into Hardware With Buy of Data Warehousing's DATallegro

Sure Microsoft owns Xbox but generally people in hardware feel they are safe from competition with Redmond. Now Microsoft has bought a hardware company is that a sign of more to come? Microsoft is buying Aliso Viejo's DATAllegro, which sells data warehousing appliances. No financial terms were disclosed.

DATAllegro is used by companies who have enormous data warehousing needs. Microsoft plans to use the acquired technology as the basis for a SQL Server 2008 appliance. Once this port is done and the appliance is launched, Microsoft will thump its chest that it can scale as high as Linux-based products have done to date.

DATAllegro had raised around $65M in VC funding since it was founded in 2004, from Adams Capital Management, Focus Ventures, Intel Capital, JAFCO Ventures, Palomar Ventures and Venrock. The company's CEO writes on his blog that the sale of his company "created a hugely successful exit for my investors, my great team and last, but not least, me!"

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