SAN JOSE, Calif. - In a major move, Oracle Inc. has made a strategic investment in Mellanox Technologies Ltd., a supplier of InfiniBand-based chip technology.
Database giant Oracle has acquired 10.2 percent of Mellanox's ordinary shares in the open market. Oracle claims it has no plan or intention to make an unsolicited and unfriendly offer to take over Mellanox.
Mellanox said it is expected to continue to work with all technology vendors, in addition to Oracle, such as Dell, HP, IBM, and others, to maximize the usage of InfiniBand as the preferred data center communications fabric.
Oracle, by way of Sun, and Mellanox have had a long-term strategic partnership that allows Oracle to leverage Mellanox's InfiniBand products to create differentiated Oracle solutions like Exadata and Exalogic. Mellanox said igt intends to make Oracle Solaris a core supported operating system platform to help meet increasing customer demand.
"InfiniBand is by far the fastest and most efficient switch fabric for running enterprise data centers," said Oracle CEO Larry Ellison, in a statement. "Mellanox has been instrumental in maintaining InfiniBand's immense competitive lead over Ethernet. We are a big supporter of the company and this investment based upon our belief in the InfiniBand technology and in the Mellanox management team."
"Mellanox has had a long standing relationship with Sun, and now Oracle, that goes back over eight years," said Mellanox CEO Eyal Waldman. "We are pleased that Oracle has chosen to make this strategic investment in Mellanox and look forward to an expanding partnership that will maximize the potential of InfiniBand."
At Oracle recent annual meeting, the database company said it may buy or invest in a chip maker. At the time, Ellison made the surprising announcement, saying he wants to bolster the company’s hardware business. Earlier this year, Oracle completed the purchase of server manufacturer Sun Microsystems Inc.