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VMWare declines after Oracle buys competitor

Virtualization solution maker VMWare (VMW) is falling after Oracle (ORCL) acquired network virtualization maker Xsigo. Xsigo's network virtulization product enables cloud deployment at less than 50% of the cost of competing solutions, Oracle said. The company's products have already been deployed at hundreds of enterprise customers, and also provide increased asset utilization and application performance, added Oracle. In early trading, VMWare dropped $1.73, or 1.81%, to $93.97. Meanwhile, peers Citrix Systems (CTXS) and Red Hat (RHT) are also moving lower in early trading.