EMC Buys Data Warehousing Technology Provider Greenplum in All-Cash Deal

Storage vendor to leverage acquisition for new data computing product division.

EMC Corp. said that it will acquire Greenplum Inc., a seven-year old, San Mateo, CA-based provider of technology for data warehousing and analytics, for an undisclosed sum, in an all-cash deal.

The storage vendor characterized Greenplum as a “key enabler of big data clouds and self-service analytics.” EMC plans to use the Greenplum purchase to springboard a new data computing division within its EMC Information Infrastructure business, officials said.

Greenplum sells what it calls “Enterprise Data Cloud” solutions for large-scale data warehousing and analytics.

EMC said that the acquisition is expected to close in Q3 2010 pending regulatory approval. The storage vendor said the purchase is not forecast to have a material impact on GAAP and non-GAAP earnings for the 2010 fiscal year.

Once the deal closes, Bill Cook, Greenplum chief executive, will head the new EMC data computing product division, reporting to Pat Gelsinger, EMC president and chief operating officer.

EMC said it will offer Greenplum’s full compliment of products to customers and plans to bring new EMC Proven reference architectures and an integrated, high performing, cost effective hardware and software offering to market.

The vendor suggested that the explosion in data--what it called the “big data phenomenon”--played a role in the Greenplum acquisition. EMC pointed to data compiled by researcher International Data Corp. forecasting a 44 fold increase over the next 10 years in the amount of digital data created annually.

"The data warehousing world is about to change,” said Gelsinger. “Greenplum's massively-parallel, scale-out architecture, along with its self-service consumption model, has enabled it to separate itself from the incumbent players and emerge as the leader in this industry shift toward 'big data' analytics.”

Cook, in an open letter posted on Greenplum’s website, said, “What energizes us most about this acquisition is EMC's ability to open new doors of opportunity and invest in the future we all so passionately believe in: The power of data.”

Greenplum architecture designed for business intelligence

Greenplum uses a “shared-nothing” massively parallel processing (MPP) architecture designed from the ground up for business intelligence and analytical processing using standard hardware, officials said.

The company said that in this architecture data is partitioning across multiple segment servers with each segment owning and managing a separate set of the overall data. There is no disk-level sharing or contention, hence the term “shared-nothing” architecture.

Greenplum lists among its customers such heavyweights as Nasdaq OMX, NYSE Euronext, Skype, Equifax, T-Mobile and Fox Interactive Media.

One customer, T-Mobile, suggested that the deal would help it provide better solutions and services to its customers.

"Greenplum and EMC have the potential to be a powerful and transformational combination,” said Jeff Wiggin, T-Mobile vice president, Enterprise Systems.

“It could present many opportunities for T-Mobile USA to deliver new innovative technology solutions that have an impact on our ability to be more efficient, effective and provide better service to our customers," he said.

TAGS: cloud computing,EMC,data warehousing,Greenplum,Storage

Business News Solutions

Comment and Contribute

    (Maximum characters: 1200). You have 1200 characters left.



    Channel News| Contact D.H. Kass | Back to top

    Click the Join button below to sign up to our newsletter!

    By submitting your information, you agree that itchannelplanet.com may send you ITchannelplanet offers via email, phone and text message, as well as email offers about other products and services that ITchannelplanet believes may be of interest to you. ITchannelplanet will process your information in accordance with the Quinstreet Privacy Policy.