The IT management software and operations communities have been buzzing this week about reports that Microsoft acquired IT process automation vendor Opalis Software. We have unequivocally confirmed that this rumor is incorrect. Opalis has NOT been acquired by Microsoft. It remains an independent entity, at least for now.
Opalis, based outside of Toronto, has repeatedly reported impressive revenue growth over its short history. For the past few years, it has been a desirable morsel for larger vendors seeking to add strong process automation to their portfolios. Many have expressed interest, but its success allows Opalis to command a high premium that no suitor has yet been willing to pay.
CA is a vendor that already enjoys a leading position in overall network management. Its 2005 acquisition of Concord, which brought along the assets of the previously acquired Aprisma, instantly moved CA from an also-ran to one of the clear leaders. Concord was good, and CA has an impressive track record of growing that business since the acquisition. Still, there were some weaknesses with regard to more advanced performance analysis.
On September 14, 2009, CA finally addressed these performance gaps by announcing its intent to acquire NetQoS for $200 million. Based in Austin, TX, NetQoS is one of those exciting small companies that proved there is a better approach to many of the challenges we face. It is one of the true innovators in performance management of both infrastructure and applications.
EMC continues to tease the market with its management software ambitions, taking another step this week to build on its portfolio. On May 27, EMC announced its intent to acquire Configuresoft, a vendor of server configuration and change management (CCM) software. Forrester views this as a positive development for both companies but we eagerly await more.
Since the announcement of Oracle to acquire Sun Microsystems you can find a lot of thoughts on the web about Oracle’s main motivation behind the deal, the portfolio mapping of the two giants and how Oracle would leverage pieces of the new assets or possibly sell-off some again.
Oracle continues to assure they are not planning to depart from any of their new assets. If we believe in this mantra the consequences to the whole IT eco-system are severe. It is the first time that a large application vendor expands into the hardware territory and forces us to redefine the traditional view of IT market segmentation – again.
On April 18th, IBM announced its intent to acquire virtual tape library (VTL) and deduplication vendor Diligent Technologies. For IBM, Diligent is a good fit. The company offers both mainframe and open systems virtual tape libraries and they are a pioneer of deduplication. However, IBM already offers a market leading mainframe VTL based on its own intellectual property and an open systems VTL based on FalconStor technology — although the open systems VTL has very limited adoption — so there is also a lot of overlap. Because Diligent is a software solution, IBM can quickly integrate Diligent with any of its storage systems and bring new VTLs to market relatively quickly. It’s very likely that IBM will in fact pursue this route so it can bring an inline deduplicating VTL to market as quickly as possible.
On April 10, 2008, IBM announced its intent to acquire FilesX, a small startup that offers server-based replication and continuous data protection technology. The acquisition will become part of the Tivoli Storage Manager (TSM) family of products.
This acquisition will help IBM Tivoli fill a gap in their current portfolio of offerings for data protection. The vendor currently offers Tivoli Storage Manager (TSM), which is one of the leading enterprise-class backup software applications, and Tivoli Continuous Data Protection for Files, a product mostly used to protect PCs. In addition to traditional backup to tape or disk, TSM can also manage Microsoft Virtual Snapshots (VSS) and its own IBM storage-based snapshot technology in support of instant restore or snapshot assisted backup. But the company didn’t really have an offering for customers who wanted something that was better than backup but not as expensive as storage-based replication, this is where FilesX comes in. With FilesX, IBM can now address the recovery requirements of small enterprises that can’t afford storage-based replication. They can also meet the recovery requirements of large enterprises that want to protect more servers within their company with a more affordable replication offering as well as servers at the remote office.
It’s official, the future of information management and infrastructure is software as a service (SaaS). Today, Dell announced its intent to acquire the powerhouse in email continuity and archiving, MessageOne. This acquisition will give Dell the cornerstone that it needs to build out its own suite of SaaS offerings. Dell clearly didn’t want to be left out of race as it watched Iron Mountain successfully building out its SaaS offerings and watched its competitors and partners complete significant acquisitions in the market including Seagate Services’ acquisition of Evault, EMC’s acquisition of Mozy and IBM’s recent acquisition of Arsenal Digital Solutions. Then there’s Symantec who is building out its Symantec Protection Network.
On December 6th, 2007 IBM announced its acquisition of Arsenal Digital Solutions, a major player in the online backup service provider market. Arsenal provides online backup services to customers directly but other service providers (particularly telecommunication providers) rebrand and resell Arsenal's online backup services as their own. So the company is both provider and enabler. Arsenal is profitable, cash flow positive and has not required funding since 2002. It has approximately 3400 customers. IBM did not disclose the value of the acquisition.
It is important to note that the acquisition was made by IBM Global Services (IGS), not IBM Tivoli or IBM System and Technology. This acquisition is not about filling in a product gap (although IBM is lagging in data protection offerings that support deduplication), it's about ensuring a foothold in a critical market. In fact, the engine of Arsenal's service is EMC Avamar - what Arsenal provides is a software as a service (SaasS) wrapper around Avamar, everything you need for SaaS such as multi-tenancy, billing, reporting etc. IGS is clearly indifferent to the technology; they care about a dependable, scaleable online backup service
Backup is a struggle for both enterprises and small and medium businesses. It’s a complex ecosystem of backup software, networks, servers, disk arrays, and tape systems. Most companies report they are having difficulty completing backups in the time available and when backups fail or complete with errors, it’s often very difficult to discover the root cause. Couple those troubles with the fact that the amount of data that you need backed up is growing conservatively at 30% to 50% per year. Aside from these challenges, most companies are also interested in keeping backups longer for version history and companies are interested in the ability to perform much faster restores if they could.
Given the headaches associated with backup, many small and medium business and even some enterprises are choosing to outsource their backups all together to a service provider. There are already numerous players in the marketplace from Evault (which is resold by a number of different service providers) to Iron Mountain, to your telecommunication provider, and to emerging entrants such as Berkeley Data Systems and its Mozy service offering. This opportunity is so huge that even Symantec (which acquired Veritas) launched a beta of its own online backup service called the Symantec Protection Network. EMC’s acquisition of Berkeley Data Systems is just further proof that the online backup market is a huge opportunity.