EMC Buys ScaleIO, a Storage Provider Startup for US$ 200 Million
EMC has reportedly bought a storage company called ScaleIO for US$ 200 million, an Israli tech blog has reported, and the startup's ECS software, a way to scale network storage ability, is likely the company's target.

 

Elastic Storage

ScaleIO purports to be a software only tool that can change an application server to a virtual storage area network. This converged storage system bundles multiple server's resources into one large pool of storage, a way to balance loads across hundreds or thousands of nodes, the company says.

As a longtime leader in the storage, backup and cloud infrastructure sector, EMC seems like a place the founders at ScaleIO probably hoped would eventually hear about them. It turns out the ScaleIO team has quite a track record for building startups and selling them off. Boaz Palgi, ScaleIO founder and CEO, previously started up and sold off a company called Topio to NetApp, and Storwize to IBM.

One big advantage to ECS, ScaleIO says, it its ability to quickly add capacity on the fly, and to respond to failures. ScaleIO's data server software is installed on every server that has available capacity, and it distributes capacity evenly across all nodes.

EMC Missed Out on SoftLayer, This Time on the Mark

EMC had reportedly been duking it out over SoftLayer with IBM, a match it obviously lost. This time, it's got the company it wanted, and it didn't even have to spend US$ 2 billion. We don't really know how much EMC paid for ScaleIO either, but the initial report had it pegged in the US$ 200 to US$ 300 million range. As of this writing, neither company has officially announced the deal.

This is the first deal EMC has made since it acquired parts of Adaptivity, a cloud and IT planning company in May. Before that, EMC had spun off Pivotal Initiative, a big data organization, and bought up iWave, an automated storage provisioning company, back in January.

Not only is EMC growing via the ScaleIO buy this week, it's also hiring up staff for its Cork, Ireland office, part of a 100 million Euro investment there. The offices will open in Citygate, Mahon, Co Cork in August, the company announced, and it has already hired up 200 engineers, support, sales, finance and research staff ahead of the opening.