EMC Snags Storage Resource Management Start-up

In an effort to maintain the top spot in the storage management software space, EMC is acquiring Astrum Software, a privately held storage resource management firm.

The acquisition of Boston-based Astrum Software is the ninth software acquisition by EMC in the last three years and expands the company's portfolio of SRM software, the fastest-growing segment of the storage management software market.

Astrum, whose products are optimized for automated file management, file-level reporting and capacity utilization in small and medium networked storage environments, will strengthen EMC's ability to address a full range of automated networked storage requirements, EMC said. The acquisition includes approximately 30 employees and Astrum Software's portfolio of storage management software. Financial terms of the acquisition were not disclosed.

"Astrum Software will help us provide our mid-tier customers with a more comprehensive view of their storage resources and further simplify the implementation and management of networked storage," said Erez Ofer, EMC's executive vice president for Open Software Operations.

EMC also said it will continue Astrum Software's existing OEM relationship with Overland Storage, a provider of storage management software solutions. "EMC's selection of this technology is a big win for Overland Storage, EMC and Astrum Software customers," proclaimed John Cloyd, vice president and general manager of Overland's Storage Management Business Unit. "The greater technical and financial resources EMC will bring to bear on the future development of Astrum Software's solutions promise a bright future for our customers and partners."

EMC Number 1 In Storage Management Software, Gartner Says
Gartner, meanwhile, reported that the storage management software market suffered its first-ever year-over-year decline last year. The market reported license revenue of $4.7 billion in 2002, a 6% decline over 2001, according to Gartner.

EMC remained the number 1 storage management software vendor in 2002, with market share of 25.6%, while its nearest rival, Veritas Software, garnered 18.6%. Gartner analysts said that if $1.5 billion in array- and switch-based software were excluded from the analysis, Veritas would be in the lead, and EMC would move to the number 3 slot behind IBM.

HP acquired Compaq Computer in 2001, and even though revenue declined 2 percent in 2002, the combined company moved up into the number 4 slot from the number 5 position earned by Compaq in 2001.

"Only three of the top 10 vendors were able to grow software revenue in a very challenging year," said Carolyn DiCenzo, vice president for Gartner's storage group. "Hitachi/Hitachi Data Systems, which sells its storage array software directly, and through Hewlett-Packard and Sun Microsystems, saw 77% growth in 2002."

In addition to sixth-ranked Hitachi, fifth-ranked Computer Associates grew sales 16%, and ninth-ranked Network Appliance saw 19.8% growth. Legato, BMC and StorageTek rounded out the top 10, at 7, 8 and 10, respectively.


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