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
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning 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 busin...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search and...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.