Cloud Computing

TMCnews Featured Article

November 15, 2010

EMC Seeking to Acquire Isilon for $2.25 Billion

By Susan J. Campbell, TMCnet Contributing Editor

EMC (News - Alert) Corp., would like to expand its footprint and to do so, plans to acquire fellow data-storage company Isilon Systems Inc. EMC will purchase Isilon Systems for $2.25 billion.

Consolidation in this sector is continuing, according to a Wall Street Journal report, and this acquisition is just another move to eliminate some of the competition.

The demand for data storage is certainly growing and is expected to continue as virtualization and cloud computing become more widespread. At the same time, people and businesses are generating more information that needs to be protected.

With a limited number of companies actually offering storage, the expected rise in demand is helping their stock prices to soar.

If this transaction is successful, Isilon holders would receive $33.85 per share, a 29 percent premium on Friday’s closing price – an all-time high. The company’s stock already quadrupled this year as takeover moves in the sector spurred increased activity.

The deal is expected to close by the end of the year and will boost earnings for next year. EMX anticipates that revenue from Isilon and its related network-storage-attached systems will reach a $1 billion run rate within two years.

Hopkinton, Mass.-based EMC reiterated its 2010 forecast. With shares closing Friday at $21.72, the company enjoyed a 24 percent rise this year.

In other EMC news, TMCnet recently reported that EMC formed a vision for a next-generation information intelligence platform. Top executives of the presented the keynote address at Momentum Europe 2010.

The event included IT leaders and practitioners, and focused on taking advantage of the emerging technology trends in cloud computing, dynamic application services and new mediums of user interaction that will further transform the way IT serves the needs of the business.

Nasuni, a provider of cloud storage gateway, announced integration between its Nasuni (News - Alert) Filer and EMC Atmos cloud storage to offer customers a simple, scalable and cost-effective online storage solution that leverages the power of the cloud.

EMC's Atmos cloud storage platform manages and optimizes external clouds as part of an overall private cloud strategy; the Nasuni Filer is an advanced virtual file server provisioned by the cloud. Combined, the solutions provide users the flexibility to securely store, distribute and retrieve data.

As EMC looks to extend its reach through this acquisition of Isilon, customers should expect additional features to the company’s portfolio. As the competition is eliminated in the market, however, pricing may not be as aggressive. We may have to wait and see.

Susan J. Campbell is a contributing editor for TMCnet and has also written for To read more of Susan’s articles, please visit her columnist page.

Edited by Tammy Wolf