Posted by: Dave Raffo
Word is coming out of Israel that EMC is deep in talks to acquire software-based storage startup ScaleIO for a price tag in the range of $200 million to $300 million. ScaleIO came out of stealth last December with software that it positions as a virtual storage appliance for enterprises and cloud service providers.
ScaleIO would fit the software-defined storage strategy that EMC laid out for its ViPR software last month at EMC World. EMC’s vision for ViPR combines the ability to pool storage across any hardware with cloud management capabilities. ScaleIO’s Elastic Converged Storage (ECS) can help on both fronts.
ECS agents install on servers running hypervisors, databases and other applications. The software aggregates capacity on those servers, turning them into a large storage network. The concept is similar to the virtual storage appliance (VSA) approach taken by Hewlett-Packard’s StoreVirtual VSA, built on LeftHand technology and VMware’s vSphere Storage Appliance, but those products are for small- and medium-sized businesses and small enterprises.
ECS would be a fit for public cloud storage, which tends to be more server-based than SAN- and NAS-focused enterprise storage. ScaleIO founder and CEO Boaz Palgi claimed at launch that he had one customer using ECS on 260 nodes. He said customers can add nodes on the fly and the software automatically rebalances performance.
It’s too soon to say how much of ScaleIO technology would end up in ViPR, but it’s unlikely that EMC would make a software buy now without considering it part of its software-defined strategy.
“This possible move leaves us to think more deeply about EMC’s willingness to aggressively step in front of potential meaningful disruptive secular changes,” Stifel Nicolaus Equity Research financial analyst Aaron Rakers wrote in a report to clients today. Rakers added that he sees the possible acquisition as “another move to position itself against the evolution toward open source solutions, pubic cloud providers and other software vendors pushing into software-defined storage.”
ScaleIO, which is based in Israel but has a Palo Alto, Calif. office, raised $12 million in funding from Greylock Partners, Norwest Venture Partners (NVP) and private investors.