News
12/22/2010
01:50 PM
George Crump
George Crump
Commentary
Connect Directly
RSS
E-Mail
50%
50%

Why All The Big Deals?

Have you noticed that there seems to be a lot more "big" deals when it comes to storage acquisitions lately? Dell-Compellent, EMC-Isilon, HP-3PAR, EMC-Data Domain. This is not to say that there hasn't been smaller deals and part of the reason for the increase in big deals is perception, there is more to discuss which generates more press. There is however strategic reasoning behind the increase in larger deals.

Have you noticed that there seems to be a lot more "big" deals when it comes to storage acquisitions lately? Dell-Compellent, EMC-Isilon, HP-3PAR, EMC-Data Domain. This is not to say that there hasn't been smaller deals and part of the reason for the increase in big deals is perception, there is more to discuss which generates more press. There is however strategic reasoning behind the increase in larger deals.The companies getting bought like those listed above are mature and in almost every case had been a stand alone company for five years. They had established products, salesforces and channels. They also had measurable customer bases and obviously mature products. The reason I believe these types of transactions are so attractive to the larger companies is all they have to do is not mess it up. In most cases their plans are to just leave the company getting bought alone, fund their growth and watch the profits roll in.

There is often not even the veiled discussion of integration of the new company's technology into the existing product line. Ironically the only real integration tends to be in people but typically only the sales organizations and the back end financials. Product development in particular is left alone. As we discussed in our recent article "Which Storage Company Gets Bought Next: Areas of Need" what is really happening is that the purchases are being made to fill the holes in the product line so that the sales organization has multiple products to solve every problem.

This is not a bad strategy. The acquiring company gets a needed infusion of money and, possibly more important, access to a significantly larger sales organization to help promote its products. They are, in most cases, left on their own to continue to develop and innovate the product. The larger company in theory can now solve more of their customer's storage related problems.

I do think this puts more pressure on the larger vendors to educate their sales and engineering organizations on how to best solve each individual customer problem. I fear that too often the sales pitch is going to be you (the customer) pick what storage solution you think is best and we'll sell it to you. Until then the IT team is going to have to be better educated on the various differences in the technologies. If you ask a vendor 'should I use NAS or SAN for my virtual infrastructure' I fear the answer being "you pick and we'll sell it" instead of a thorough discussion of the pros and cons of each storage protocol.

Track us on Twitter: http://twitter.com/storageswiss

Subscribe to our RSS feed.

George Crump is lead analyst of Storage Switzerland, an IT analyst firm focused on the storage and virtualization segments. Find Storage Switzerland's disclosure statement here.

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
White Papers
Cartoon
Current Issue
Dark Reading Must Reads - September 25, 2014
Dark Reading's new Must Reads is a compendium of our best recent coverage of identity and access management. Learn about access control in the age of HTML5, how to improve authentication, why Active Directory is dead, and more.
Flash Poll
10 Recommendations for Outsourcing Security
10 Recommendations for Outsourcing Security
Enterprises today have a wide range of third-party options to help improve their defenses, including MSSPs, auditing and penetration testing, and DDoS protection. But are there situations in which a service provider might actually increase risk?
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2003-1598
Published: 2014-10-01
SQL injection vulnerability in log.header.php in WordPress 0.7 and earlier allows remote attackers to execute arbitrary SQL commands via the posts variable.

CVE-2011-4624
Published: 2014-10-01
Cross-site scripting (XSS) vulnerability in facebook.php in the GRAND FlAGallery plugin (flash-album-gallery) before 1.57 for WordPress allows remote attackers to inject arbitrary web script or HTML via the i parameter.

CVE-2012-0811
Published: 2014-10-01
Multiple SQL injection vulnerabilities in Postfix Admin (aka postfixadmin) before 2.3.5 allow remote authenticated users to execute arbitrary SQL commands via (1) the pw parameter to the pacrypt function, when mysql_encrypt is configured, or (2) unspecified vectors that are used in backup files gene...

CVE-2012-5485
Published: 2014-09-30
registerConfiglet.py in Plone before 4.2.3 and 4.3 before beta 1 allows remote attackers to execute Python code via unspecified vectors, related to the admin interface.

CVE-2012-5486
Published: 2014-09-30
ZPublisher.HTTPRequest._scrubHeader in Zope 2 before 2.13.19, as used in Plone before 4.3 beta 1, allows remote attackers to inject arbitrary HTTP headers via a linefeed (LF) character.

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Chris Hadnagy, who hosts the annual Social Engineering Capture the Flag Contest at DEF CON, will discuss the latest trends attackers are using.