Acquisitive storage system vendor EMC Corp. (NYSE: EMC) is paying too much for OSS vendor System Management Arts Inc. (Smarts). (See EMC Gets Smarts).
At $260 million, EMC is paying 4.5 times annual revenues for the fault management company, as Smarts says it will hit about $60 million in sales in 2004.
That price is way higher than could have been expected, says Patrick Kelly, a partner at consultancy OSS Observer.
"Assuming Smarts's current revenue growth rate is sustainable for the next three years, it should have been valued at between $140 million and $170 million," reckons Kelly.
"Obviously EMC thinks it can help Smarts lift the pace, but I have my doubts," adds the analyst.
To realize the benefits of cloud-native software, an application must actually be cloud-native—designed to run in the cloud, interacting with disaggregated cloud services, fully manageable as code—to deliver the expected benefits.
By combining resources and expertise, the AI-Enabled ICT Workforce Consortium will offer a blueprint for how industries can adapt to an AI-dominated future.
IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
