EMC acquired Cloudscaling
In October 2014, EMC (EMC) announced the completion of its Cloudscaling acquisition. According to Bloomberg, the acquisition was under $50 million. Cloudscaling Group Inc. is an OpenStack Infrastructure as a service (or IaaS) solution developer that has developed open cloud system (or OCS) technology. OCS technology enables customers to build OpenStack-based private clouds on their own choice of hardware.
If EMC’s Cloudscaling acquisition is able to create synergy, it will benefit ETFs like the Technology Select Sector SPDR (XLK) that have significant exposure to the company.
Cloudscaling OCS technology lets customers build their own IaaS solutions
OCS is an integrated offering that encompasses a cloud operating system, cloud operations console, cloud management layer, hybrid delivery services, and hardware reference designs. OCS helps companies to manage large numbers of computers that are linked together by OpenStack.
Formed in 2010, OpenStack is a free open-source technology. OCS technology aims to help customers build their own IaaS solution that is fully interoperable with leading public cloud services like Amazon’s (AMZN) Amazon Web Services (or AWS), Microsoft (MSFT) Azure, Google (GOOG) (GOOGL) Compute Platform, and OpenStack.
OCS has an advanced scheduler for intelligent placement of new virtual machines into a cloud infrastructure with performance guarantees. It also has support for block, objects, and fixed storage options along with the Cinder open source plug-in. As the above presentation shows, OCS provides a choice of networking infrastructure, including secure virtual networks in OpenStack clouds.