EMC Corp. (NYSE: EMC) will spend $260 million in cash to acquire System Management Arts Inc. (Smarts), an 11-year-old vendor of event reporting and correlation software for networked systems (see EMC Acquires Smarts).
The move nabs a key management player for EMC. Privately held Smarts specializes in a patented modeling language that locates and identifies devices and systems in a distributed network, gathers information about them, and correlates the data to determine status and make predictions.
Smarts, which competes primarily with Micromuse Inc. (Nasdaq: MUSE), correlates and reports events in a range of environments, including IP, IP multicast, IP telephony, MPLS, and optical transport networks. Smarts integrates its event reporting with a range of network and systems management products, such as OpenView from Hewlett-Packard Co. (NYSE: HPQ), various Tivoli programs from IBM Corp. (NYSE: IBM), and the Patrol series from BMC Software Inc. (NYSE: BMC).
Smarts claimed 25 percent growth from 2003 through 2004, moving from $48 million in revenue last year to $60 million this year. It claims 175 service provider customers and more than 4,500 additional customers through OEM partnerships with Cisco Systems Inc. (Nasdaq: CSCO), Ericsson AB (Nasdaq: ERICY), IBM, and a range of integrators.
EMC wants to apply Smarts' event correlation to its storage and SAN management wares, and ultimately to a broader range of information lifecycle management (ILM) tools, a key focus for EMC (see Tucci Touts ILM). Smarts will eventually augment software from other parts of EMC, such as Documentum, Legato, and VMware, to unify event reporting from various points in the IT infrastructure.