Within the next 12 months, Microsoft will start extending SQL Server to support very large volumes of data, based on technology it acquired from DATAllegro.

Microsoft announced plans to acquire the developer of large-volume data warehouse appliances in July and said on Tuesday that the deal has closed.

It plans to begin by offering community technology previews within the next 12 months of a product that integrates DATAllegro technology so that SQL Server users can support hundreds of terabytes of data, Microsoft said. The final product should become commercially available in the first half of 2010, the company said.

At the time of the acquisition announcement, Microsoft said that DATAllegro's technology will allow it to compete with the highest-end enterprise data warehousing solutions, surpassing Oracle's capabilities.

Microsoft may reveal more details about its plans for DATAllegro's technology at its business intelligence conference in Seattle in early October. Customers are likely interested to find out more about how Microsoft plans to integrate the technologies, given that DATAllegro's appliance is based on the open-source Ingres database.

That could also be an issue for Microsoft if it hopes to retain DATAllegro's existing customer base, which might have to migrate to SQL Server in favor of Ingres in order to continue using technology from DATAllegro in the future. Microsoft says it plans to support existing DATAllegro customers.

As previously announced, Microsoft will retain most of DATAllegro's staff and will maintain its headquarters in Aliso Viejo, California. The companies have not revealed terms of the deal.

The acquisition reflects market demand for better and more cost-effective products for managing and mining very large volumes of data. Microsoft has also recently acquired Zoomix, a developer of data quality technology.