Data virtualization (DV) is a hot topic these days. More companies are adopting the technology to add agility and consistency to their data management landscape. A driver to this adoption is the shift away from enterprise data warehouse (EDW) centric architectures to embrace a new multi-platform driven strategy. Adding additional purpose built platforms (analytic appliances, Hadoop, NoSQL, etc) to  accomplish complex operational and analytic workloads is paying off for innovative companies but at the same time it adds a new level of complexity and some difficult challenges surrounding data integration. These new complex architectures have created a greater demand for data virtualization solutions.

Cisco has recognized this market opportunity and on July 30th, 2013 completed the $180 million acquisition of  Composite Software, a leading data virtualization software and services company. There are many moving parts to these transactions but perhaps the biggest area of interest is the opportunity this acquisition has for disrupting the data virtualization space. Data virtualization leverages query optimizers, database connections and deploys additional technology to deliver the fastest possible speed to data. The network has always been a roadblock to greater success regardless of how well optimized the solution might be to work with it. Cisco brings a wealth of insight to this issue and will certainly add new functionality to Composite that will allow it to better understand network traffic and perhaps control it to some extent. In doing so Cisco and Composite will enhance the capabilities of data virtualization beyond those its competitors. I expect we will see significant activity from their competitors to strengthen their bonds with network partners in the coming months.

Moving forward Cisco plans to operate Composite as an independent entity keeping the entire executive team, R&D group, and sales and services organization, demonstrating that Cisco intends to grow the revenue stream of its acquisition and to focus on further innovation from its technology.

I covered this event in greater detail in an EMA Impact Brief that you can download here.

Highlights include:

  • Details of the acquisition
  • Insights into data virtualization technology
  • Synergies of the acquisition
  • Go to market strategy post-acquisition
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