The rumors are true. Oracle has finally announced that its intent to acquire Virtual Iron for its virtual server management capabilities.

It's a nice fit for Oracle, which has its own Xen-based virtualization platform called Oracle VM. Up until now, Virtual Iron has been selling its management tools on its own Xen-derived hypervisor. The net result is that Oracle gets dynamic resource management, power management, and better virtual server capabilities. And since Virtual Iron was built to manage Xen-based systems, the integration should be done by lunchtime on the day of the acquisition.

The acquisition brings up some larger questions, however, such as how Oracle will integrate Oracle VM, Oracle Enterprise Manager, and Virtual Iron Sun's xVM Server and xVM Ops Center. Now that it will supply hardware and virtualization platforms, Oracle will need to build out a stronger system management and automation portfolio.