Oracle has agreed to acquire Virtual Iron Software, a provider of server virtualization management software that enables dynamic resource and capacity management in virtualized data centers.

The combination of Virtual Iron’s technology and Oracle VM’s scalable, high performance and highly available server virtualization product is expected to provide more comprehensive and dynamic resource management across the full software stack. Customers are expected to benefit from better capacity utilization, streamlined virtual server configuration, and improved visibility and control of their enterprise software.

The transaction is subject to customary closing conditions and is expected to close this summer. Until the deal closes, each company will continue to operate independently. Financial details of the transaction were not disclosed.

“Industry trends are driving demand for virtualization as a way to reduce operating expenses and support green IT strategies without sacrificing quality of service,” said Wim Coekaerts, Oracle Vice President of Linux and Virtualization Engineering. “With the addition of Virtual Iron, Oracle expects to enable customers to more dynamically manage their server capacity and optimize their power consumption. The acquisition is consistent with Oracle’s strategy to provide comprehensive enterprise software management and will facilitate more efficient management of application service levels.”