November 15, 2010 – Information management and storage corporation EMC announced Monday a $2.25 billion cash proposal for Isilon, a network storage systems company.

EMC will pay $33.85 per share in cash for Isilon, according to a joint company news release. Boards of directors for both companies have unanimously agreed on the deal, which is still subject to outside customary approvals.

Seattle-based Isilon specializes in data storage through scale-out network attached storage systems, which start small but can expand quickly in public or private clouds.

In a news release, EMC chairman and CEO Joe Tucci said the acquisition would give customers their dollar’s worth from deploying storage to cloud environments, along with an anticipated $1 billion run-rate from their complimentary services.

“The unmistakable waves of cloud computing and ‘Big Data’ are upon us. Customers are looking for new ways to store, protect, secure and add intelligence to the vast amounts of information they will accumulate over the next decade,” Tucci said.

Greg Schulz, found and senior advisor with analyst firm, The StorageIO Group, says the initial news of the acquisition will stir up questions about cost and choice of Isilon, along with discussion about how EMC’s existing products can now be supplemented to compete with other big firms like Dell and HP.

“Longer term, [the acquisition] should help to solidify EMC in multiple sectors around file-based storage of unstructured data, which is where the bulk of data storage growth is occurring,” Schulz says.

“Over time, EMC has shown how they can take a product from a smaller vendor who had a niche market focus and make it mainstream. Let’s see if EMC can replicate that success again,” says Schulz.

In July, EMC made inroads in the data and analytics warehousing market with the acquisition of Greenplum, which recently launched its new integrated data warehousing system.

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