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 Greenplums 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 Greenplums 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.
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