EMC Acquiring ScaleIO In Software-Defined Storage Play: Reports


Lumenate's Shepard said he would not be surprised to see EMC pick up a storage startup like ScaleIO given that EMC has acquired a number of Israeli startups, some of which were founded by companies previously acquired by EMC.

For instance, Shepard said, Erez Webman, founder and CTO of ScaleIO, was previously the chief architect at XtremIO. One of the investors in ScaleIO, Frank Slootman, was president and CEO of Data Domain, which EMC acquired in 2009. And Shuki Bruck, co-founder and chairman of XtremIO, also served as co-founder and chairman of Rainfinity, which EMC acquired in 2005.

Shepard also said he would not be surprised if EMC takes its time announcing the ScaleIO acquisition.

"Unlike other vendors, EMC won't come out and just say, 'We bought ScaleIO,'" he said. "Customers will wonder what's going on. It could disrupt existing sales. EMC plans these things out before hitting the market. They're real good about talking about where an acquisition fits, what it means to the customer."

EMC so far is declining to talk about whether it has acquired ScaleIO, with an EMC spokesperson citing a standing company policy to decline commenting on "rumor and speculation."

ScaleIO did not respond to requests for further information publication time.

Aaron Rakers, an analyst with Stifel Nicolaus Equity Research, wrote in a Thursday research note that an acquisition of ScaleIO by EMC could have a widespread impact on that company's strategies.

"We believe this acquisition leaves investors left to further gauge EMC's software-defined strategy and thus another move to position itself against the evolution toward open source solutions, public cloud providers and other software vendors push into software-defined storage," Rakers wrote.

PUBLISHED JUNE 20, 2013