Welcome!

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Article

EMC Buys Isilon for Big Data and the Cloud

Isilon is supposed to be good at what has come to be called Big Data

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.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Latest Stories
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...