|By Maureen O'Gara||
|November 16, 2010 09:00 AM EST||
EMC is going to peel off $2.25 billion in cash money to buy scale-out NAS house Isilon Systems and that figure's net of the money Isilon has in the bank. It'll be paying $33.85 a share, roughly a 29% premium over Isilon's closing price last Friday.
Boy, was the Wall Street Journal wrong. It said last week that EMC had balked at paying a significant premium for the joint since Isilon's price spiked to a $1.8 billion market cap on chatter that EMC was interested. Seems Frank Quattrone, who handled Isilon like he did 3PAR, hasn't lost his knack for delivering carriage trade deals for properties that don't seem worth that kind of money.
Isilon is supposed to be good at what has come to be called Big Data, the massive amounts of unstructured data produced by such things as online streaming and seismic interpretation.
It competes mostly with EMC rival NetApp and EMC a little bit, but the acquisition is going to let EMC expand its cloud footprint and make new use of its VMware, RSA Security and Data Domain acquisitions.
"The cloud isn't hype," EMC said during a conference call Monday.
In a statement CEO Joe Tucci said, "The unmistakable waves of cloud computing and ‘Big Data' are upon us. Customers are looking for new ways to store, protect, secure and add intelligence to the vast amounts of information they will accumulate over the next decade. EMC, in combination with Isilon, sits at the intersection of these trends..."
EMC means to pair Isilon with its Atmos cloud-optimized object storage for unstructured Big Data even if the two widgetries currently have different interfaces (Atmos is SOAP and REST; Isilon CIFS and NFS). Atmos is supposed to good at massive globally distributed environments and object access to the data in things like Web 2.0 applications.
EMC said the technologies will work in parallel to start; common management software shouldn't be much of a problem; it'll see where it goes from there; it pooh-poohed differences in operating systems and interfaces. It expects the two properties together to triple their revenues in two years and have a combined billion-dollar run-rate in the second half of 2012.
Nine-year-old Isilon, which lost money last year, is supposed to do about $200 million this year, up 77% year-over-year, but is still barely profitable.
It hasn't gotten very far outside of America. EMC expects to fix that. It thinks it's just catching the Big Data wave that's already drowning some companies and overwhelming other people's NAS architecture.
Isilon is supposed to be chi-chi because its relatively simple architecture can scale out to capture and analyze Big Data without needing more IT staff. Its 1,500 customers include folks like Adobe, ARM, PetroChina, NBC, Merck, Kodak, Sony and the Harvard-MIT genome sequencing project. Kodak Galley started with 10TB and with two billion images is now at 10PB without adding minders. Scale-out is new to storage and 10PT is as far as Isilon can go right now.
EMC is promising to invest in all aspects of Isilon's business to accelerate growth and take advantage of the market opportunity. Isilon should also benefit from EMC's buying power since it uses x86 servers.
EMC said the transaction should close late this year. The break-up fee is $100 million if anybody cares to try to upset the apple cart.
The acquisition and its employees will report to EMC Information Infrastructure Products unit.
EMC says the purchase shouldn't have a material impact on its full-year 2010 GAAP or non-GAAP diluted EPS and should be accretive to its non-GAAP 2011 diluted EPS.
EMC reaffirmed its guidance for realizing non-GAAP earnings of $1.25 a share on revenues of $16.9 billion this year excluding any restructuring and acquisition-related charges, stock-based compensation expenses and intangible asset amortization.
IDC projects the scale-out NAS segment will grow approximately 36% a year and be worth better than $6 billion dollars in 2014. EMC figures data volumes should grow 44x by 2020, with growth in unstructured data being three times structured data.
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
May. 25, 2016 05:00 AM EDT Reads: 985
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 25, 2016 04:45 AM EDT Reads: 825
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
May. 25, 2016 04:45 AM EDT Reads: 2,425
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 25, 2016 04:15 AM EDT Reads: 3,034
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 25, 2016 04:00 AM EDT Reads: 1,053
Korean Broadcasting System (KBS) will feature the upcoming 18th Cloud Expo | @ThingsExpo in a New York news documentary about the "New IT for the Future." The documentary will cover how big companies are transmitting or adopting the new IT for the future and will be filmed on the expo floor between June 7-June 9, 2016, at the Javits Center in New York City, New York. KBS has long been a leader in the development of the broadcasting culture of Korea. As the key public service broadcaster of Korea...
May. 25, 2016 04:00 AM EDT Reads: 1,693
In his session at 18th Cloud Expo, Bruce Swann, Senior Product Marketing Manager at Adobe, will discuss how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects). Bruce Swann has more than 15 years of experience working with digital marketing disciplines like web analytics, social med...
May. 25, 2016 02:00 AM EDT Reads: 1,126
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 24, 2016 11:45 PM EDT Reads: 822
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 24, 2016 11:30 PM EDT Reads: 1,098
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
May. 24, 2016 09:00 PM EDT Reads: 1,805
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 24, 2016 08:45 PM EDT Reads: 972
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
May. 24, 2016 06:00 PM EDT Reads: 4,662
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit y...
May. 24, 2016 05:00 PM EDT Reads: 1,855
Cloud computing changed data analytics for good. It enabled companies to drastically decrease resources and architecture previously assigned with business intelligence departments. It also enabled laymen to run advanced business analytics. Cloud was also the architecture of choice for storing and processing big data. Data piling is a continuous process, which is going to explode with emerging Internet of Things concept. Answer to this issue developers found in new concept called fog computing. ...
May. 24, 2016 04:15 PM EDT Reads: 1,833
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
May. 24, 2016 04:00 PM EDT Reads: 1,689