Microsoft has acquired data warehouse appliance maker DATAllegro in an attempt to strengthen its presence in the enterprise business intelligence market.

DATAllegro specializes in large-volume, high-performance data warehouse appliances with anywhere from 1 terabyte of data to hundreds of terabytes. Microsoft said the addition of DATAllegro means that its SQL Server product will now scale to large-scale data warehouses. Microsoft said it would retain most of DATAllegro’s team in Aliso Viejo, Calif.

Terms of the deal were not disclosed. Thanks to the deal, MIcrosoft will add new customers in retail, telecom and manufacturing. Its biggest competitor is Oracle. DATAllegro raised $19.6 million in a fourth round of funding in May. The round was led by Hillman Company and participants included Adams Capital Management, Focus Ventures, Intel Capital, JAFCO Ventures, Palomar Ventures and Venrock Associates.

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