For the second time in less than a month, EMC Corp. (NYSE: EMC)
has quietly acquired a small software company with a focus on SMBs. The latest target is Allocity Inc., an EMC partner that sells storage management and provisioning software for Exchange users running Clariion storage.
EMC closed the deal October 22 but did not announce it. The Allocity deal is even tinier than the acquisition of SMB backup and recovery software player Dantz Development Corp. last month (see EMC Dances With Dantz). While EMC said it paid less than $50 million for Dantz, a source with knowledge of the deal said it paid around $10 million for Allocity.
EMC spokesman Dave Farmer confirmed the sale but would not comment on the price. Its a small tactical technology acquisition in line with our ongoing strategy to reach the SMB market, Farmer says.
Like the Dantz buy, Allocity should bolster EMCs software revenue, in this case by targeting a new market -- capacity planning and automatic provisioning.
Farmer says Allocity has fewer than 30 employees, who will be integrated into EMCs sales and engineering departments. Integrating the product should be a snap -- Allocitys LiveEx software was bundled with Clariion storage even before the sale.
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