Feeds

NetApp buys Data Domain for $1.5bn

Will it dedupe the deduping?

HP ProLiant Gen8: Integrated lifecycle automation

NetApp announced late Wednesday it will acquire dedupe specialist Data Domain for $1.5 billion in cash and stock. The purchase will effectively spring NetApp to the forefront of vendors selling redundant-data-busting technology when the deal closes in an expected two to four months.

NetApp said the company intends to run Data Domain as a separate product line within its operations. In a conference call describing the deal, NetApp chief marketing officer Jay Kidd labeled the purchase as mainly an opportunity for market presence rather than blending Data Domain technology with its own.

The firm's rationale is that Data Domain adds multi-vendor disk space for backup, while NetApp provides a larger reach of customers, particularly in the EMEA and APAC regions and certain big enterprise accounts.

"Our objective will be to amplify Data Domain's success, grow Data Domain's revenues as quickly as today's economy will allow, and create systems and incentives within NetApp to nurture Data Domain to its fullest potential," Warmenhoven said in a statement.

NetApp said that because its dedupe technology mostly deals with primary storage while Data Domain works minimizing tape for data archiving, there's going to be minimal overlap between the two storage companies.

But NetApp does sell NearStore VTLs with separate dedupe licenses - and that certainly compete with Data Domain. Kidd admits there's some issues in the blending, but claims the benefits of acquiring Data Domain will exceed product overlap woes. He added that the companies are not publicly talking about product integration plans at this point and will continue to operate as two entities until the deal closes.

Santa Clara, California-based Data Domain has 825 employees and reported about $274m in sales last year. Kidd didn't say how many of the Data Domain workers will be brought aboard in the purchase, but assured the value of the companies team is "very well understood" by NetApp. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.