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By Mel Duvall
In its first briefing since EMC won a hostile battle for Data Domain, the company says it plans to create a new product division focused around the company's deduplication technology.
Hopkinton, Mass.-based EMC said Monday that Data Domain will become the foundation of a new product division within EMC's storage business, focused on the development and delivery of next-generation disk-based backup, recovery and archive offerings.
The new division will be led by Frank Slootman, Data Domain's president and chief executive and will report to Joe Tucci, EMC's chairman and CEO.
In a statement, Tucci said the combined company will take aim at making storage and back-up processes simpler and more reliable for customers, "changing the game in the storage software market and creating new market opportunities for growth."
The Data Domain acquisition is expected to be completed by the end of July. EMC said it will increase its investment into the new division with the aim of growing revenue at double-digit rates. The company believes the division can achieve $1 billion in revenue in 2010. As a stand-alone company, Data Domain had been on a rapid growth curve, seeing its revenues climb from $46 million in 2006 to $274 million in 2008. Prior to the takeover battle between EMC and rival NetApp, Data Domain had predicted it was on target to record about $370 million in revenues in 2009.
EMC offered deduplication technology of its own, but Santa Clara-based Data Domain had been recognized as the market leader.
While Data Domain had favored Silicon Valley neighbor NetApp in the takeover battle, CEO Slootman seemed resigned to move forward with his new partner. "We envision great opportunity to accelerate our business through EMC's massive worldwide distribution network and customer base, and we can't wait to begin seeing that play out in the market place," he said in a statement.
The companies did not say where the new backup, recovery and archive division would be headquartered, but EMC does have a history of allowing companies it has acquired in Silicon Valley to continue to operate in the valley. A clash between east and west coast cultures was enough of a concern during the takeover battle, that EMC took out a full page ad in the San Jose Mercury news where it touted its track record of being "mindful of culture - respecting and preserving the various cultures that made the companies (EMC) acquired successful in the first place."
EMC has acquired 12 Silicon Valley firms since 2002.
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