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
Partner Perspectives
What's This?
In a digital world inundated with advanced security threats, Intel Security seeks to transform how we live and work to keep our information secure. Through hardware and software development, Intel Security delivers robust solutions that integrate security into every layer of every digital device. In combining the security expertise of McAfee with the innovation, performance, and trust of Intel, this vision becomes a reality.

As we rely on technology to enhance our everyday and business life, we must too consider the security of the intellectual property and confidential data that is housed on these devices. As we increase the number of devices we use, we increase the number of gateways and opportunity for security threats. Intel Security takes the “security connected” approach to ensure that every device is secure, and that all security solutions are seamlessly integrated.
Featured Writers
White Papers
Cartoon
Current Issue
Dark Reading's October Tech Digest
Fast data analysis can stymie attacks and strengthen enterprise security. Does your team have the data smarts?
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-2012-5242
Published: 2014-10-21
Directory traversal vulnerability in functions/suggest.php in Banana Dance B.2.6 and earlier allows remote attackers to include and execute arbitrary local files via a .. (dot dot) in the name parameter in a get_template action.

CVE-2012-5243
Published: 2014-10-21
functions/suggest.php in Banana Dance B.2.6 and earlier allows remote attackers to read arbitrary database information via a crafted request.

CVE-2012-5702
Published: 2014-10-21
Multiple cross-site scripting (XSS) vulnerabilities in dotProject before 2.1.7 allow remote attackers to inject arbitrary web script or HTML via the (1) callback parameter in a color_selector action, (2) field parameter in a date_format action, or (3) company_name parameter in an addedit action to i...

CVE-2013-7406
Published: 2014-10-21
SQL injection vulnerability in the MRBS module for Drupal allows remote attackers to execute arbitrary SQL commands via unspecified vectors.

CVE-2014-2531
Published: 2014-10-21
SQL injection vulnerability in xhr.php in InterWorx Web Control Panel (aka InterWorx Hosting Control Panel and InterWorx-CP) before 5.0.14 build 577 allows remote authenticated users to execute arbitrary SQL commands via the i parameter in a search action to the (1) NodeWorx , (2) SiteWorx, or (3) R...

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Follow Dark Reading editors into the field as they talk with noted experts from the security world.