Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

MTI Gets Collective

Not all recent mergers in the storage market involve suppliers. MTI Technology, a storage consulting firm and EMC integrator, took a key step in its own empire-building plan this week.

MTI, which has 315 employees and headquarters in Irvine, Calif., announced plans to purchase Collective Technologies, an IT consulting and integration firm of about 132 employees based in Austin, Texas. The purchase includes $6 million in cash and another $6.4 million in stock, warrants, and notes. (See MTI to Acquire Collective.)

MTI execs haven't decided whether all Collective employees will stay with the new company, or what the potential opportunities will be -- or won't be -- for Collective's management team.

MTI CEO Tom Raimondi says the deal is part of a plan to strengthen MTI's identity as a systems integrator, a kind of Accenture for enterprises in the $100 million to $1 billion revenue range. "The market for services is strong and growing," he says. "Our whole model is evolving into an SI, not a VAR... Our sweet spot is to be a total solutions provider. The audience we are targeting is wanting a high-calibre SI."

Clearly, MTI no longer wants to be perceived as simply a VAR for EMC, an identity the company forged back in the 1990s. Though it started life as a maker of its own storage equipment, principally RAID gear, MTI sold 20 of its technology patents to EMC in 1996 in a royalty- and license-sharing arrangement that helped solidify a longstanding relationship. By 2003, MTI management decided to quit selling its own gear and focus solely on EMC resale and consulting services. (See MTI Halts Its Hardware.)

  • 1