Analysis

On 5/27, EMC announced that it was acquiring ConfigureSoft one of the two leading independent vendors of configuration, change, and compliance management software (the other leading independent vendor being TripWire). The stated goal of the acquisition is to “Empower Customers to Automate Visibility and Control Across their Physical and Virtual Data Centers”.

EMC already has a significant IT management software portfolio with products like Smarts and Control Center. These products are primarily focused upon managing the physical servers,  networks and SAN’s which (in the case of storage) comprise EMC’s hardware business, or (in the case of networks and servers) are immediately adjacent to the storage business.

To date, EMC has not brought to market a management product (either through internal development or acquisition) that specifically targets the virtual environments that are being created by EMC’s subsidiary VMware. While the announcement states that virtual environments are a target of the solution, there is as of yet no history of the EMC sales force selling a software solution into the VMware customer and prospect base. The Configuresoft product contains a Virtual Center plug-in so at least the start of the product integration is present. What remains to be seen is how this solution is further integrated into the VMware vCenter suite of management offerings and whether or not it or any portion of it will be released with a vCenter brand and sold by the VMware organization.

If EMC does not pursue further technical and brand integration of these products with VMware, and it chooses to sell these products with EMC sales force into the VMware prospect and customer base, then this will risk confusing customers and propects who are being told that virtualization management (like Host Profiles) is something that VMware offers with vSphere and will continue to enhance.

If on the other hand EMC chooses to release portions of the acquired technology with a VMware brand and through the VMware channel, then the result is likely to be less confusion on the part of VMware customers, prospects and channel partners, but also a much greater competitive threat to the independent virtualization management vendors.

The Announcement

HOPKINTON, MA – May 27, 2009 – EMC Corporation (NYSE:EMC), the world leader in information infrastructure solutions, today announced that it has signed a definitive agreement to acquire privately-held Configuresoft, Inc.- a leading provider of server configuration, change and compliance management software. Today’s announcement extends EMC’s powerful solutions for managing the entire IT information infrastructure across storage, networks, servers, and applications – enabling customers to automate visibility and control across physical and virtual data centers. The transaction is expected to close in June, subject to customary closing conditions and is not expected to have a material impact to revenue or EPS for the full 2009 fiscal year.

The announcement builds upon an already successful OEM relationship with Configuresoft. EMC entered this OEM agreement in mid-2008 and the resulting products of EMC Server Configuration Manager and EMC Configuration Analytics Manager are currently helping customers quickly adopt virtualization, dramatically cut costs, monitor policy and security compliance, and ensure governance, risk and compliance (GRC) across their infrastructures.

“Customers are looking for new tools and processes to help them more effectively manage the virtualized data center,” said EMC’s Chris Gahagan, Senior Vice President, Resource Management Software. “Server configuration and change management are among the top challenges faced by IT. With Configuresoft, we’re gaining market-leading server configuration management solutions, giving customers the power they need to fully automate the data center in compliance with new physical and virtual best practice policies. With the addition of Configuresoft solutions to our broad family of IT management software, EMC now offers the strongest and most complete combination of server, storage, and network configuration automation tools on the market today.”

Configuresoft’s Enterprise Configuration Manager (ECM) and Configuration Intelligent Analytics (CIA) – which will continue to be known as EMC Server Configuration Manager and Configuration Analytics Manager based upon the OEM agreement — help companies achieve and maintain continuous operational, regulatory, and security compliance across their data centers. The solutions are able to quickly detect, prioritize and correct configuration compliance issues and help companies implement an automated, continuous enterprise compliance posture. Rich analytics offer customers a powerful dashboard for viewing Key Performance Indicators (KPIs) and provide visibility across network and server domains. Taking this one step further, by offering powerful integrations with EMC’s network change and configuration management and service management solutions – as well the company’s automated root-cause analysis and application dependency mapping software – customers gain total visibility and control across their physical and virtual IT infrastructure.

“At Configuresoft, we’re committed to empowering customers with information-based proactive management, enabling them to make the right choice the first time and avoid surprises and costly re-work. Since 1999, we’ve built a solid reputation as a leader in server configuration management, helping customers dramatically cut costs, ensure policy compliance and security, and validate their IT assets and infrastructure to effectively meet their needs,” said Alex Goldstein, Chief Executive Officer, Configuresoft. “Becoming part of EMC is the right move at the right time – giving us the financial and technology resources of a proven leader in information management to take our market leading solutions to the next level.”

Upon completion of the acquisition, Configuresoft will become a part of EMC’s Resource Management Software Group.
About Configuresoft
Configuresoft, the world’s leading enterprise configuration management provider, delivers automated and optimized Lean IT, secure and compliant Clean IT, and energy efficient Greet IT to IT Operations. Hundreds of organizations, including 13 of the world’s 25 largest companies, rely on Configuresoft to effectively and efficiently manage the complexity of today’s physical and virtual IT environments. Configuresoft’s team of security and policy experts ensures continuous compliance with regulatory requirements such as Sarbanes-Oxley and industry standards such as PCI DSS and Microsoft and VMware Hardening Guides. To contact Configuresoft, please call (888) 447-2220 or visit www.configuresoft.com.

About EMC
EMC Corporation (NYSE: EMC) is the world’s leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. Information about EMC’s products and services can be found at www.EMC.com.

Bernd Harzog
CEO
APM Experts
bernd.harzog@apmexperts.com

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Bernd Harzog (328 Posts)

Bernd Harzog is the Analyst at The Virtualization Practice for Performance and Capacity Management and IT as a Service (Private Cloud).

Bernd is also the CEO and founder of APM Experts a company that provides strategic marketing services to vendors in the virtualization performance management, and application performance management markets.

Prior to these two companies, Bernd was the CEO of RTO Software, the VP Products at Netuitive, a General Manager at Xcellenet, and Research Director for Systems Software at Gartner Group. Bernd has an MBA in Marketing from the University of Chicago.

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