Business Cloud News
ScaleIO will help EMC remain competitive as enterprises move to public clouds

ScaleIO could help EMC remain competitive as enterprises and SMBs move to public clouds

In a move to remain competitive in the storage market, leading storage solutions provider EMC is looking to acquire ScaleIO, an Israeli start-up specialising in elastic converged storage technology.

Details of the impending deal are scarce but the price tag is reported to range between $200m and $300m. Neither EMC nor ScaleIO have returned Business Cloud News requests for comment.

ScaleIO’s software technology offers the ability to create virtual SANs (Storage Area Network) and enables them to operate with the same level of adaptability of block-level storage, allowing users to group together and pool server storage so it can be managed and provisioned easily across thousands of servers. The company came out of stealth mode just over six months ago and was founded by Boaz Palgi, a serial entrepreneur who helped found and sell off a number of other tech companies to heavyweights like IBM and Netapp.

ScaleIO’s offering makes use of software-defined storage technology and the company claims to be able to offer 80 to 90 per cent cost savings, which is threating to the IBMs and AWSs of the world. That being said, the acquisition would allow EMC to offer more AWS-style capability and help lure customers away from leading public cloud providers.

As SMBs and large enterprises continue to move to utility-type clouds while continuing to consolidate and connect their racks in hosted datacentres, storage providers like EMC are looking for ways to leverage and integrate all of the resources to output the best level of performance possible. ScaleIO’s technology is certainly a positive step in that direction, and EMC’s response to competitive threats in the storage space is, often, to acquire them. Last year the company acquired another Israeli-based storage company, XtremIO, a flash storage architecture pioneer, and the fruits of that acquisition will be seen shortly with the launch of the first EMC XtremIO flash array due to hit the market in July.