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
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. 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 results.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
"We started a Master of Science in business analytics - that's the hot topic. We serve the business community around San Francisco so we educate the working professionals and this is where they all want to be," explained Judy Lee, Associate Professor and Department Chair at Golden Gate University, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...