July 23, 2009 -- LSI bolstered its portfolio of storage systems today with the news that it has inked a deal to buy NAS-maker ONStor for $25 million in cash.
ONStor, a privately held, Campbell, Calif.-based company, builds clustered network-attached storage (NAS) systems designed to store and manage unstructured data. ONStor's products include NAS gateways and systems and unified storage systems sold through the channel and OEM partners.
ONStor recently broke its own product mold when it announced the Pantera LS 2100, a unified storage system based on open-source software and the Zettabyte File System (ZFS).
The LS 2100 series is a family of unified IP storage systems that provide both iSCSI and NAS support in a single box. Targeting SMBs – a first for ONStor – the Pantera LS 2100 family also includes a variety of built-in data and storage management tools based on the OpenSolaris operating system and ZFS.
ONStor also sells the Bobcat and Cougar families of clustered NAS gateways.
"The rapid growth of unstructured data is creating significant challenges for enterprises in provisioning, protecting and managing their storage in an efficient and cost-effective manner," said Abhi Talwalkar, LSI president and CEO, in a press release issued earlier today. "With the addition of ONStor products and technology, LSI will be well positioned to offer a comprehensive set of storage solutions to help enterprise customers effectively manage both their unstructured and structured data with ease."
LSI's current product lineup includes a range of storage technologies from custom silicon ASICs to HBAs and its Engenio storage systems.
The transaction is expected to close within thirty days and is subject to satisfaction of customary closing conditions. LSI expects to provide further details on July 29 when it reports second quarter results.
EMC-Data Domain update
In other acquisition news, EMC announced this morning that it has successfully completed its tender offer for all outstanding shares of common stock of Data Domain.
EMC now controls approximately 94.2% of Data Domain shares outstanding and expects to effect a second-step merger and complete its acquisition of Data Domain today.
Thursday, July 23, 2009
Tuesday, July 21, 2009
TIP expects spending increase in 2H '09
July 21, 2009 -- On the eve of earnings for many major vendors, TheInfoPro (TIP) research firm is predicting a second half increase in technology spending.
According to TIP's customer research, which is based on interviews with thousands of Fortune 1000 and medium-sized enterprise end users, IBM, EMC and NetApp have been most affected by the tech spending slowdown of '09.
TIP claims that the best performing vendors have been those that compete on price or base their pitch on return on investment (ROI). CommVault, Data Domain and HP all fall into that category.
On the networking side, TIP predicts, "Cisco and Juniper will benefit from pent-up demand for increasing network capacity and performance, which will result in higher network equipment spending once economic conditions improve. Projects with a more immediate ROI will continue to be promoted for the remainder of 2009, benefiting WAN optimization providers such as Cisco, Riverbed and Blue Coat."
Data Domain was slated to release its Q2 earnings this Thursday, but nixed its concall after EMC announced yesterday that it has acquired majority ownership of Data Domain. EMC expects to complete its acquisition of DDUP by month's end and is slated to report its earnings Thursday morning.
Also on deck for earnings this week are Microsoft, F5, Riverbed, Juniper and VMware. Time to sit back, grab some popcorn and watch it all unfold.
Check out TIP's predictions and the firm's latest customer research at www.theinfopro.net.
According to TIP's customer research, which is based on interviews with thousands of Fortune 1000 and medium-sized enterprise end users, IBM, EMC and NetApp have been most affected by the tech spending slowdown of '09.
TIP claims that the best performing vendors have been those that compete on price or base their pitch on return on investment (ROI). CommVault, Data Domain and HP all fall into that category.
On the networking side, TIP predicts, "Cisco and Juniper will benefit from pent-up demand for increasing network capacity and performance, which will result in higher network equipment spending once economic conditions improve. Projects with a more immediate ROI will continue to be promoted for the remainder of 2009, benefiting WAN optimization providers such as Cisco, Riverbed and Blue Coat."
Data Domain was slated to release its Q2 earnings this Thursday, but nixed its concall after EMC announced yesterday that it has acquired majority ownership of Data Domain. EMC expects to complete its acquisition of DDUP by month's end and is slated to report its earnings Thursday morning.
Also on deck for earnings this week are Microsoft, F5, Riverbed, Juniper and VMware. Time to sit back, grab some popcorn and watch it all unfold.
Check out TIP's predictions and the firm's latest customer research at www.theinfopro.net.
Friday, July 10, 2009
Is Data Domain a good fit for EMC?
July 10, 2009 -- The experts are weighing in on EMC's pending acquisition of Data Domain and questions abound. Did EMC pay too much? How will it juggle its many data deduplication offerings? Did NetApp make the right move?
The price tag was just too high. EMC forced NetApp to bow out of its acquisition agreement with Data Domain earlier this week after upping the ante to $2.1 billion.
According to some analysts, this may have been a blessing in disguise for NetApp.
"NetApp just forced EMC to spend [more than $2 billion] for an asset that really doesn't fit and that EMC didn't want until it thought NetApp would get Data Domain," says David Vellante, co-founder and contributor to The Wikibon Project. "EMC-ers believe that dedupe is best done at the source. It's a culture clash of a serious nature."
Vellante believes NetApp's interest in acquiring Data Domain was based on the potential impact it could have on the bottom line.
"NetApp wanted Data Domain because it saw Data Domain as the path of least resistance to $5 billion in revenue. Personally, I think there are better ways to get there," he says.
Vellante's opinion echoes that of Enterprise Strategy Group (ESG) founder and senior analyst Steve Duplessie.
"I think the price was too high to begin with and nuts by the end," says Duplessie. "I think NetApp would have enjoyed a lot of synergies and opportunity with Data Domain, but at that price, there was simply no margin for error. I think it would have strapped them and put an unnecessary microscope on their every move that would deflect from the fact that they are a great company. I think they will be happy with their decision."
Now, he says, EMC will be under that microscope.
"EMC has more room to maneuver simply because of their size and assets, but that doesn't mean they won't be under the microscope. That's a mongo big price to pay for anyone to simply ignore it. They certainly have the muscle and brains to make it work, but it won't be easy," says Duplessie.
The price tag was just too high. EMC forced NetApp to bow out of its acquisition agreement with Data Domain earlier this week after upping the ante to $2.1 billion.
According to some analysts, this may have been a blessing in disguise for NetApp.
"NetApp just forced EMC to spend [more than $2 billion] for an asset that really doesn't fit and that EMC didn't want until it thought NetApp would get Data Domain," says David Vellante, co-founder and contributor to The Wikibon Project. "EMC-ers believe that dedupe is best done at the source. It's a culture clash of a serious nature."
Vellante believes NetApp's interest in acquiring Data Domain was based on the potential impact it could have on the bottom line.
"NetApp wanted Data Domain because it saw Data Domain as the path of least resistance to $5 billion in revenue. Personally, I think there are better ways to get there," he says.
Vellante's opinion echoes that of Enterprise Strategy Group (ESG) founder and senior analyst Steve Duplessie.
"I think the price was too high to begin with and nuts by the end," says Duplessie. "I think NetApp would have enjoyed a lot of synergies and opportunity with Data Domain, but at that price, there was simply no margin for error. I think it would have strapped them and put an unnecessary microscope on their every move that would deflect from the fact that they are a great company. I think they will be happy with their decision."
Now, he says, EMC will be under that microscope.
"EMC has more room to maneuver simply because of their size and assets, but that doesn't mean they won't be under the microscope. That's a mongo big price to pay for anyone to simply ignore it. They certainly have the muscle and brains to make it work, but it won't be easy," says Duplessie.
Monday, July 6, 2009
EMC raises bid as NetApp gets green light from regulators
July 6, 2009 -- If you thought EMC was out of the race for Data Domain – think again. Just as NetApp announced this morning that it has received the go ahead from federal regulators to take its acquisition proposal to a stockholder vote, EMC once again raised its offer to acquire Data Domain. The EMC bid now stands at more than $2 billion.
The Data Domain Board of Directors currently plans to hold a meeting of stockholders and a merger vote on August 14. EMC is hoping to spoil the party by forcing Data Domain’s stockholders to take a long, hard look at its latest offer.
Under its revised proposal, EMC has increased its offer to acquire all the outstanding common stock of Data Domain to $33.50 per share in cash, for a total value of approximately $2.1 billion, net of Data Domain’s cash. NetApp’s offer is currently $1.9 billion.
EMC CEO Joe Tucci outlined the offer today in a letter to Data Domain’s Board Chairman, Aneel Bhusri. Here is the full text of Tucci’s letter:
Dear Aneel:
On behalf of EMC, I am pleased to submit to you and your Board of Directors this revised proposal to acquire all outstanding Data Domain common stock for $33.50 per share in cash. This price represents a substantial premium to the cash and stock proposal of NetApp and is a Superior Proposal as defined in your merger agreement with NetApp. The Board of Directors of EMC has unanimously approved this proposal.
As with our prior proposal, EMC’s revised proposal is not subject to any financing or due diligence contingency, and we will use existing cash balances to finance the transaction. In addition, we have received all necessary regulatory approvals. We are amending our currently outstanding tender offer to acquire all of the outstanding shares of Data Domain to reflect our higher price.
We enclose a revised definitive agreement that has been executed on behalf of EMC and which reflects our new $33.50 per share, all cash offer. This agreement is substantially identical to the NetApp proposal except as to the fact that the EMC offer:
-- Is materially higher in price;
-- Reflects our faster two-step structure, which will enable you to close almost a month faster than under the NetApp proposal; and,
-- Very importantly, eliminates all deal protection provisions that could further impede the maximization of stockholder value, including the no solicitation section and the break-up fee obligation.
This last point is very significant to you and your stockholders. Data Domain does not have any justification for continuing deal protection provisions for NetApp or any other party given our willingness to proceed without them. It was questionable agreeing to deal protections in your initial agreement with NetApp, when you knew of our interest in acquiring the company. There is no basis for continuing with them now.
We strongly believe that the Data Domain Board of Directors should pledge to eliminate all deal protection provisions that could further impede maximizing stockholder value. Such a commitment would be the proper exercise of the Board's fiduciary duties to secure a transaction in the best interests of Data Domain stockholders, particularly in light of the EMC proposal described in this letter.
With the early termination last week of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 concluding all regulatory conditions to this transaction, EMC could be in a position to close this transaction and deliver cash to your stockholders in as little as two weeks.
In comparison to your proposed transaction with NetApp, EMC’s proposal represents a far superior alternative for your stockholders.
EMC’s proposal provides higher absolute value for each Data Domain share.
As an all-cash offer, EMC’s proposal offers greater certainty of value.
EMC’s definitive agreement does not contain deal protection provisions that could further impede the maximization of stockholder value – including any termination fee – and is more favorable to the stockholders of Data Domain.
EMC’s transaction offers a faster time to close of almost a month.
We continue to believe that a business combination with EMC will deliver substantial and superior benefits to your company’s stockholders, customers, employees and partners. Since June 1st, when we submitted to you our prior proposal, we have received wholehearted support from many of your stockholders and customers validating our confidence in these benefits.
We encourage you to accept the merits of our proposal and look forward to your execution of the definitive agreement enclosed.
Very truly yours,
Joseph M. Tucci
Chairman, President and Chief Executive Officer
EMC Corporation
Further details on EMC’s latest offer are available on EMC’s website.
The Data Domain Board of Directors currently plans to hold a meeting of stockholders and a merger vote on August 14. EMC is hoping to spoil the party by forcing Data Domain’s stockholders to take a long, hard look at its latest offer.
Under its revised proposal, EMC has increased its offer to acquire all the outstanding common stock of Data Domain to $33.50 per share in cash, for a total value of approximately $2.1 billion, net of Data Domain’s cash. NetApp’s offer is currently $1.9 billion.
EMC CEO Joe Tucci outlined the offer today in a letter to Data Domain’s Board Chairman, Aneel Bhusri. Here is the full text of Tucci’s letter:
Dear Aneel:
On behalf of EMC, I am pleased to submit to you and your Board of Directors this revised proposal to acquire all outstanding Data Domain common stock for $33.50 per share in cash. This price represents a substantial premium to the cash and stock proposal of NetApp and is a Superior Proposal as defined in your merger agreement with NetApp. The Board of Directors of EMC has unanimously approved this proposal.
As with our prior proposal, EMC’s revised proposal is not subject to any financing or due diligence contingency, and we will use existing cash balances to finance the transaction. In addition, we have received all necessary regulatory approvals. We are amending our currently outstanding tender offer to acquire all of the outstanding shares of Data Domain to reflect our higher price.
We enclose a revised definitive agreement that has been executed on behalf of EMC and which reflects our new $33.50 per share, all cash offer. This agreement is substantially identical to the NetApp proposal except as to the fact that the EMC offer:
-- Is materially higher in price;
-- Reflects our faster two-step structure, which will enable you to close almost a month faster than under the NetApp proposal; and,
-- Very importantly, eliminates all deal protection provisions that could further impede the maximization of stockholder value, including the no solicitation section and the break-up fee obligation.
This last point is very significant to you and your stockholders. Data Domain does not have any justification for continuing deal protection provisions for NetApp or any other party given our willingness to proceed without them. It was questionable agreeing to deal protections in your initial agreement with NetApp, when you knew of our interest in acquiring the company. There is no basis for continuing with them now.
We strongly believe that the Data Domain Board of Directors should pledge to eliminate all deal protection provisions that could further impede maximizing stockholder value. Such a commitment would be the proper exercise of the Board's fiduciary duties to secure a transaction in the best interests of Data Domain stockholders, particularly in light of the EMC proposal described in this letter.
With the early termination last week of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 concluding all regulatory conditions to this transaction, EMC could be in a position to close this transaction and deliver cash to your stockholders in as little as two weeks.
In comparison to your proposed transaction with NetApp, EMC’s proposal represents a far superior alternative for your stockholders.
EMC’s proposal provides higher absolute value for each Data Domain share.
As an all-cash offer, EMC’s proposal offers greater certainty of value.
EMC’s definitive agreement does not contain deal protection provisions that could further impede the maximization of stockholder value – including any termination fee – and is more favorable to the stockholders of Data Domain.
EMC’s transaction offers a faster time to close of almost a month.
We continue to believe that a business combination with EMC will deliver substantial and superior benefits to your company’s stockholders, customers, employees and partners. Since June 1st, when we submitted to you our prior proposal, we have received wholehearted support from many of your stockholders and customers validating our confidence in these benefits.
We encourage you to accept the merits of our proposal and look forward to your execution of the definitive agreement enclosed.
Very truly yours,
Joseph M. Tucci
Chairman, President and Chief Executive Officer
EMC Corporation
Further details on EMC’s latest offer are available on EMC’s website.
Thursday, July 2, 2009
EPA seeks feedback on Energy Star storage specification
July 2, 2009 -- What will your refrigerator soon have in common with your storage array? It's not the crisper drawer. Well, not yet anyway. Someone could roll out a new unified SAN/NAS/Frigidaire system that stores your data and your produce. I guess anything is possible. What I'm talking about is the Energy Star program.
The Environmental Protection Agency (EPA) has begun work on a specification framework that will ultimately result in an energy efficiency program for enterprise storage systems. Translation: Energy Star stickers will eventually appear on your favorite storage devices.
Not to pat myself on the back, but this humble reporter predicted an Energy Star program for enterprise storage products a while back. I just didn't think it would take this long.
The specification is in draft form, but the EPA needs a little help with developing the framework. For example, David Floyer raises a key issue in his Wikibon blog. The EPA isn't considering software. He writes:
"Action Item: EPA should include software functionality in its specification for achieving Energy Star. This would allow a far more aggressive energy savings to be set as a standard for Energy Star certification. The vendor should be given the choice of how to achieve these energy savings against the base of a storage array with no software and poor power supplies. This approach will achieve higher levels of savings and enhance the EPA energy star brand."
Last call for comments on the Energy Star Enterprise Storage Draft Specification Framework is tomorrow, July 3. The Wikibon folks are currently collecting and consolidating reader feedback and plan to submit its collective opinion by the end of the week. Get in on the conversation here.
The Environmental Protection Agency (EPA) has begun work on a specification framework that will ultimately result in an energy efficiency program for enterprise storage systems. Translation: Energy Star stickers will eventually appear on your favorite storage devices.
Not to pat myself on the back, but this humble reporter predicted an Energy Star program for enterprise storage products a while back. I just didn't think it would take this long.
The specification is in draft form, but the EPA needs a little help with developing the framework. For example, David Floyer raises a key issue in his Wikibon blog. The EPA isn't considering software. He writes:
"Action Item: EPA should include software functionality in its specification for achieving Energy Star. This would allow a far more aggressive energy savings to be set as a standard for Energy Star certification. The vendor should be given the choice of how to achieve these energy savings against the base of a storage array with no software and poor power supplies. This approach will achieve higher levels of savings and enhance the EPA energy star brand."
Last call for comments on the Energy Star Enterprise Storage Draft Specification Framework is tomorrow, July 3. The Wikibon folks are currently collecting and consolidating reader feedback and plan to submit its collective opinion by the end of the week. Get in on the conversation here.
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