Speculation of more acquisitions in the storage space
In the prior part of this series, we noted that even before the current, EMC (EMC) and Dell had a symbiotic partnership that ended in 2011. Let’s see how this acquisition, along with the WDC–SNDK (Western Digital–SanDisk) deal, has created a ripple effect in the storage space.
October 2015 saw two major buyouts in the technology space. First, Dell announced a $67 billion buyout offer for EMC, the largest buyout offer to date in the technology space. Later, SanDisk (SNDK), which was eagerly looking for a buyer, found one in Western Digital (WDC). WDC agreed to buy SanDisk for $19 billion. The deal is expected to be one of the largest M&A (merger and acquisition) deals in the semiconductor space in 2015.
On August 11, 2015, Symantec’s information management and data storage business, Veritas, made headlines when the Carlyle Group announced its acquisition for $8 billion.
With so many acquisitions occurring in the storage space, it is natural to wonder which company is next in the acquisition parade. Let’s look at some startups in the storage space that can add value to IT companies.
Data storage startups
Nimble Storage, Pure Storage, Tintri, SolidFire, and Tegile Systems are some rapidly growing systems vendors that could bridge a technology company’s storage gap. Hyper-converged infrastructure startups like Nutanix and SimpliVity could serve as a good fit for large server or storage vendors. Some of these vendors already have partnerships with global systems vendors like Dell, Hewlett-Packard (HPQ), and Cisco Systems (CSCO).
Commvault, Actifio, Veeam Software, Arcserve, and Catalogic Software are among the data protection software companies that can enhance enterprise vendors’ value. IDC (International Data Corporation) forecasts that enterprises could spend more than $40 billion on storage hardware in 2015. For more information on this subject, please read What Does the Data Storage Industry Have in Store for Startups?
Investors can consider gaining broad exposure to EMC via the iShares Dow Jones US Technology ETF (IYW). IYW invests about 1.44% of its holdings in EMC.