Microsoft to Acquire DATAllegro

by CXOtoday Staff    Jul 26, 2008

Microsoft Corp. is set to acquire DATAllegro Inc., a provider of data
warehouse appliances. With this acquisition Microsoft is looking to
strengthen its data warehousing portfolio.

“DATAllegro is a tremendously innovative company that has started to
redefine the data warehouse market,” said Ted Kummert, corporate vice
president of the Data and Storage Platform Division at Microsoft.
“Microsoft SQL Server 2008 delivers enterprise-class capabilities in
business intelligence and data warehousing, and the addition of the
DATAllegro team and its technology will take our data platform to the
highest scale of data warehousing.”

Said Stuart Frost, CEO of DATAllegro, in a blog, “As soon as the
acquisition closes, we’ll start the work of moving our technology from
Ingres & Linux to SQL Server and Windows. Our feasibility studies over the
last few months indicate that SQL Server is a significant improvement in
terms of performance - especially in key areas such as star joins, I/O
throughput and in-memory operations. The engineering team here at
DATAllegro is excited about the next version of the product.”

Unlike most data warehouse appliance vendors targeting the 1-25 terabyte
range, DATAllegro has specialized in large-volume, high-performance data
warehouses. DATAllegro’s data warehouse appliance installations boast some
of the largest data volume capacities in the industry — up to hundreds of
terabytes on a single system, according to a press release. DATAllegro
clients span such markets as retail, telecommunications and manufacturing.

In addition to offering large capacities, DATAllegro’s patent-pending
technology is designed for complex workloads including high concurrency
and mixed queries. DATAllegro is one of the few data warehouse appliances
built on a nonproprietary hardware platform including Dell and Bull
servers and EMC storage.

After completing the acquisition, Microsoft will retain most of
DATAllegro’s team as well as its headquarters in Aliso Viejo, Calif.,
making it a Center of Excellence for data warehousing. Existing DATAllegro
customers will continue to be supported, the release said.
William McKnight, Partner, Information Management at Lucidity Consulting
Group in his blog posted yesterday called the move strategic for
Microsoft’s enterprise goals.

He said that while Microsoft has significantly expanded SQL Server’s scale
over the past few years, the perception of its limitations has been
somewhere below the big guys of Oracle and IBM. “And, wherever you believe
the scalability of SQL Server has grown to, now undoubtedly the scale of
Microsoft solutions goes beyond 100 terabytes. This is the scale that
many, myself included, believe accessible data management capabilities
need to get to in order to manage the future of telecommunications,
retail, healthcare and other transactions and make them available.”
The open source DBMS that Datallegro was using, Ingres, will be
scrapheaped over time and replaced by SQL Server. This will take some
time, but Microsoft has that, McKnight said in the blog.
Curt Monash an independent analyst argued in his blog that Oracle and
Microsoft are doomed in the datawarehouse market unless they acquire’
MPP/shared-nothing data warehouse DBMS and/or data warehouse applications.
“DataAllegro is the ideal acquisition for either of them.”

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