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Cloud Storage: Three Acquisitions In One Week Signals Consolidation On The Way

By Joseph F. Kovar
October 19, 2012    5:12 PM ET

Page 1 of 4

This week's acquisition of three small cloud storage providers in a single week is a solid sign that the cloud storage market is finally starting to mature.

However, while this week's three acquisitions help consolidate an industry that is characterized by a multitude of small companies, their rational varies in each case, showing that the industry still has a way to go before becoming fully mature.

The biggest was Microsoft's planned acquisition of StorSimple, a developer of hybrid local and hybrid cloud storage technology for Windows platforms.

[Related: Cloud Storage For All: How To Build Your Own Practice]

It was followed this week by Persistent Systems' acquisition of the cloud platform business Doyenz, which focuses on disaster recovery-as-a-service, and by Carbonite's planned acquisition of Zmanda, the commercial provider of the Amanda open-source cloud backup technology.

While Microsoft has yet to unveil its plans for Santa Clara, Calif.-based StorSimple's technology other than to call it a way to expand its cloud technology and help its customers better take advantage of hybrid cloud computing, it could be used to provide a cloud storage gateway using Microsoft's Azure cloud on the back end. Such a move, however, would mean competing with other cloud storage gateway providers that might use Azure as the back-end storage.

Other speculation about Microsoft's rationale for acquiring StorSimple revolve around the need for a better way to take advantage of Azure as a means for improving ease-of-use with Microsoft's SharePoint application.

For Persistent Systems, a Pune, India-based provider of software and technology services that drives the majority of its business to the U.S. market through its Santa Clara, Calif., office, Doyenz represents a chance for a huge expansion of its managed services business.

Nara Rajagopalan, chief product officer at Persistent, said the company over 20 years has built a business providing technology, engineering consulting and development services to a variety of verticals, and it has also been building a managed services business.

Doyenz is Persistent's third acquisition so far this year in terms of IP-led services, after getting the mobile location service of Openwave and the outsourced product development service division of Infospectrum, Rajagopalan said.

NEXT: Taking Disaster Recovery As A Service To MSPs

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