Virtual Instruments gobbles up Xangati in cash-free deal

Buying app monitoring and analytics smarts to add to its infrastructure intelligence

Storage workload and network testing company Virtual Instruments has bought Xangati and its hybrid cloud and virtualisation performance management technology.

Back in March Load Dynamix and Virtual Instruments merged, taking the Virtual Instruments name and receiving $20m in funding from Load Dynamix investors. Some 26 employees were then hired and added to the payroll.

Think of Xangati as a service assurance analytics and performance management company for virtualised servers. The company wanted to enable a self-healing and self-optimising hybrid data centre. VI now gets Xangati's app-monitoring smarts, with deep server, IP network, virtualisation layer and cloud monitoring, to add to its own infrastructure and network-monitoring technology.

VI says: "As a result of the acquisition, VI will offer advanced virtual server monitoring, IP network monitoring, and end-user experience monitoring capabilities that build upon the VirtualWisdom strengths in networked storage and virtual server monitoring."

Both VI and Xangati are privately owned and based in San Jose. Xangati was founded in 2006 by CTO Jagan Jagannathan. President and CEO S 'Sundi' Sundaresh was Adaptec's CEO up until the end of 2009. He then did various board-level things at Sandforce and GridGain, and joined Xangati in 2013.

Xangati is being bought with VI shares; it's not a cash deal. All Xangati product development, engineering and support employees plus a few more have been offered jobs in the VI-Xangati combined company. So a few Xangati employees will lose their jobs.

VI says that it and Xangati provide "comprehensive visibility and actionable analysis across the compute, network and storage infrastructure" in data centres. The combo can give IT teams better control of application performance delivery and infrastructure spend within private and public clouds on legacy or newer hyper-converged platforms.

In a canned quote, Philippe Vincent, VI's CEO, said: "By adding Xangati's monitoring and advanced analytics expertise to Virtual Instruments' capabilities, we are even better positioned to help companies assure performance, increase availability, and optimise the cost of application and service delivery."

Another canned quote from Torsten Volk, managing research director at Enterprise Management Associates, said: "With the acquisition of Xangati, [VI] now owns all the critical parts to offer a single solution for proactive virtualisation, server, network, storage and cloud performance management."

Jagannathan now becomes chief innovation officer at Virtual Instruments; a wondrous title. VI already has a CTO – John Gentry – so Jagannathan couldn't pinch that title.

There looks to be a natural fit between the two companies – we could say Xangati is a virtual instrument itself – and we expect the now larger and more capable VI to do well. A new Xangati software release should come before the end of the year.

An acquisition FAQ can be read here. ®

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