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EMC brings Documentum into the fold

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EMC has put the finishing touches on its Documentum acquisition, paying $1.48 billion for the software maker.

With the deal now completed, Documentum will become a division of EMC and keep its headquarters in Pleasanton, California. The division will be led Dave DeWalt, the former President and CEO of Documentum, who will report straight to EMC top dog Joe Tucci.

EMC has now acquired Legato and Documentum and is working on closing its VMware buy, which was announced earlier this week. Industry watchers have voiced some concern about EMC's ability to bring three new software companies into the fold. With this in mind, EMC was quick to reassure pundits that the Documentum buy, in particular, is running along smoothly.

Documentum's sales and distribution channels will operate independently from those of EMC. In addition, Documentum's sales, marketing and services plans will remain unchanged. The two companies will overlap in the area of research and development.

EMC has publicly stated that it wants all three of the acquired companies to operate more or less as they did before. The idea is simply to tap into various key bits of technology where possible and share these across divisions. As some analysts have pointed out, however, EMC is starting to resemble a software holding company.

Legato, Documentum and VMware are accustomed to selling software for a variety of hardware and software platforms, which has not traditionally been EMC's forte. But the company, at least publicly, seems confident that it can play well with others and maintain the independent nature of its software purchases. ®

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