On May 14, Acxiomannounced its intention to acquire LiveRamp, a "data onboarding service," to the tune of $310 million in cash. Several Forrester analysts (Tina Moffett, Susan Bidel, Sri Sridharan, and I) cover these two firms, and what follows is our collective thinking on the impending acquisition after having been briefed by Acxiom's leadership on the matter.
With last week's $175M acquisition of storage startup Inktank, the initial developer of the Open Source Ceph storage platform, Red Hat has added another piece to its growing storage portfolio. With large storage players fleshing out their software storage offerings including EMC (ScaleIO, Project Nile), NetApp, HP, and IBM, it's clear that the transition from hardware-centric storage appliances to software storage is underway — and it won't be long before we are at a point where your next array should be an app running on commodity hardware.
Though large storage players have successfully fended off software challengers such as Symantec before, it is telling that nearly all of the major players are developing and marketing their own software storage products, including EMC’s ScaleIO. The drive toward software storage is clearly gaining momentum, and this time around the storage leaders are active participants in addition to startups such as Nexenta Systems and the Open Source projects.
While Red Hat is not a major storage player today, there are a few reasons why this company could become disruptive as the market transitions to software storage:
No legacy business to lose. This is probably the most powerful attribute that makes Red Hat dangerous relative to existing storage players. While Red Hat’s market share (in terms of storage revenue and paying customers) is nowhere near the likes of leaders such as NetApp and EMC, its lack of legacy business will allow Red Hat to attack the NAS, object, and block storage market without the sacrifice of losing high-margin storage appliance sales.