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EMC Nets nLayers, Scopes Security

NEW YORK -- EMC, which picked up storage resource management specialist nLayers for an undisclosed fee today, looks set to continue on its M&A tear over the coming months. CEO Joe Tucci identified security and virtualization as potential target areas during a speech to open the firm's analyst day. (See EMC Acquires nLayers and EMC Outlines Strategy.)

Having spent $4.5 billion on a slew of acquisitions in just over two and a half years, EMC added the San Jose, Calif.-based startup to its storage resource management portfolio today. (See EMC Captures Captiva, EMC Acquires Acartus , and EMC Cops Documentum.) nLayers' flagship product is its InSight appliance that monitors data center applications and devices, enabling users to check service levels and usage patterns.

The firms have a history. EMC already OEMs nLayer's technology, which forms the foundation of one of EMC's Smarts products -- the Smarts Application Discovery Manager software. EMC execs told Byte and Switch that nLayers' workforce of around 30 employees will join the storage vendor, although they will remain at their existing site.

Smarts, acquired by EMC in late 2004, built its reputation by identifying root causes of performance degradation or failure in IP networks. EMC rolled out Smarts IP Availability Manager for NAS earlier this year. (See EMC Stays Smart, EMC Gets Smarts, and EMC Smartens Its NAS.)

Tucci hinted at future acquisitions in other key areas during his keynote today. "More missing pieces than anyplace else are in the security area," he said, in response to a question from an analyst. He added that he is also looking to tuck "several more things" into EMC's VMWare technology. (See VMware Eyes Enterprise, Microsoft, VMware Unveils New Suite, and VMware Intros Alliance .)

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