News
7/9/2009
02:22 PM
Connect Directly
RSS
E-Mail
50%
50%

EMC Acquires Data Domain For $2.4 Billion

With businesses storing 50% more data each year, EMC is betting companies will line up for its combined data archival and de-duplication offering.

When Data Domain agreed to be acquired by NetApp for $1.5 billion in May, the storage company may have undervalued itself by nearly $1 billion. Competing bidder EMC agreed this week to buy the deduplication specialist for $2.4 billion.

EMC is paying cash for Data Domain, the preferred currency over stock in these days of economic recession. NetApp's first offer for Data Domain was for $1.5 billion in cash and stock. After a few weeks of spirited bidding, NetApp dropped out of the competition.

With businesses storing 50% more data each year, according to some market research estimates, EMC is betting the acquisition will pay off. EMC said it expects the acquisition to be accretive to its non-GAAP earnings in its 2010 fiscal year.

"This is a compelling acquisition from both a strategic and financial standpoint," said Joe Tucci, EMC chairman, president, and CEO, in a statement. "We look forward to bringing Data Domain together with EMC to form a powerful force in next-generation disk-based backup and archive."

With government regulations and legal measures continuing to grow, deduplication's reduction of redundant data is becoming more important. EMC has some deduplication technology in place, but its acquisition of Data Domain and its deduplication offerings will help give it a leg up in the storage segment. While tape storage is still in widespread use, chief information officers increasingly want the speedy access offered by spinning disks and other disk storage technologies. Deduplication is helping in the shift from tape to disk backup and archive storage.

EMC said the acquisition, which is expected to be completed later this month, is expected to have a total enterprise value of $2.1 billion, net of Data Domain's cash.


InformationWeek Analytics has published an independent analysis on the state of enterprise storage. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Flash Poll
Current Issue
Cartoon
Threat Intel Today
Threat Intel Today
The 397 respondents to our new survey buy into using intel to stay ahead of attackers: 85% say threat intelligence plays some role in their IT security strategies, and many of them subscribe to two or more third-party feeds; 10% leverage five or more.
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-0640
Published: 2014-08-20
EMC RSA Archer GRC Platform 5.x before 5.5 SP1 allows remote authenticated users to bypass intended restrictions on resource access via unspecified vectors.

CVE-2014-0641
Published: 2014-08-20
Cross-site request forgery (CSRF) vulnerability in EMC RSA Archer GRC Platform 5.x before 5.5 SP1 allows remote attackers to hijack the authentication of arbitrary users.

CVE-2014-2505
Published: 2014-08-20
EMC RSA Archer GRC Platform 5.x before 5.5 SP1 allows remote attackers to trigger the download of arbitrary code, and consequently change the product's functionality, via unspecified vectors.

CVE-2014-2511
Published: 2014-08-20
Multiple cross-site scripting (XSS) vulnerabilities in EMC Documentum WebTop before 6.7 SP1 P28 and 6.7 SP2 before P14 allow remote attackers to inject arbitrary web script or HTML via the (1) startat or (2) entryId parameter.

CVE-2014-2515
Published: 2014-08-20
EMC Documentum D2 3.1 before P24, 3.1SP1 before P02, 4.0 before P11, 4.1 before P16, and 4.2 before P05 does not properly restrict tickets provided by D2GetAdminTicketMethod and D2RefreshCacheMethod, which allows remote authenticated users to gain privileges via a request for a superuser ticket.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Three interviews on critical embedded systems and security, recorded at Black Hat 2014 in Las Vegas.