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EMC Acquires Configuresoft

Its OEM provider of server configuration, change and compliance management software

EMC Corporation has signed a definitive agreement to acquire privately-held Configuresoft, Inc., a provider of server configuration, change and compliance management software. This announcement extends EMC’s 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.

Comments

When EMC said that an acquisition does not expected to have a material impact to revenue or EPS, it means that the price of the acquisition is a small sum, probably much less than $10 million.

According to Colorado Springs, CO-based Configuresoft, 400 customers, including 13 of the world's 25 largest companies, rely on its ECM to ensure configuration compliance.

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