August 18, 2009 – Terracotta acquired privately held Ehcache, a Java caching solution with an extensive user base today. The combination of the two open source companies creates the world’s largest caching deployment footprint, says Amit Pandey, CEO of Teracotta. The acquisition capitalizes on the fact that more than half of Terracotta’s customers jointly deploy Ehcache, whose enterprise production deployments are in the hundreds of thousands, according to copyright owner and primary developer on the Ehcache project Greg Luck, as well as the growing open source market. The impact of the current financial crisis and increased acceptance from enterprise software buyers has accelerated the market for open source software over the past year, according to a recent IDC study. Revenue from open source software will grow to $8.1 billion by 2013, up from $2.9 billion in 2008. Combined with Ehcache’s high-performance caching technology, Terracotta will provide enterprises with data management tools to seamlessly scale applications, according to the company release. The acquisition makes Terracotta a strong player in data virtualization as  increased use of cloud environments brings new issues of scalability, according to Pandey. “Together we give people an easy way to put the data in the cloud.”. Terracotta is now positioned to serve industries that require real-time application responsiveness, according to Anne MacFarland, director of information solutions for The Clipper Group. “The two cache-centric companies are complimentary - Terracotta has a seasoned product and a consulting practice, while Ehcache has a wealth of APIs and a very large and diverse customer set,” MacFarland says. “Together, they support caching strategies that will support greater performance, resilience and scalability of enterprise J2EE applications. What they provide becomes particularly important in industries with requirements for real-time application responsiveness.”

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