Personally I am not familiar with Xsigo, but after the acquisition of Nicira by VMware this one seems very interesting in the light of Software Defined Networking. Xsigo connects their switches by Infiniband, which is in my opinion more a competitor to the switch Fabrics like the one from Brocade and QFabric from Juniper. These however show an overlap with SDN solutions, for multiple switches share one controlplane, and one dataplane.
Enough can be said what this acquisition means for Oracle, but also for competitors like Cisco, Juniper and in this case Brocade. But I will let those opinions to the analyst sites.
To me it is another suggestion that the whole datacenter networking market is on the move and that legacy networking companies have to react to stay in the market. I say datacenter because I don’t see this, nor any SDN-solution, being ready for the WAN area yet. Decentralized controlplane or at least decentralized configuration is losing ground. Networking is getting to big and too complex to configure every network device on it’s own. Especially in datacenters where servers and load is not only moving around manually, but also dynamically. The network has to adopt dynamically and solution like Nicira ans Xsigo have solved that really well.
Let’s see what more we can expect this summer. Like discussed in the Packet Pushers Podcast, which I recommend: SDN has the potential to be a Displacement Technology.