Iomega Deal Would Raise EMC's Profile with SMBs, Consumers

Ann All

As we reported earlier, EMC recently sweetened its original $3.25-a-share offer for data storage specialist Iomega to $3.75, bringing the proposed sales price to $205.5 million.


Not a surprise, considering the "instant brand recognition" in the SMB market that Iomega would offer EMC, says a StorageIO consultant quoted in this story. While EMC is a well-known entity in the enterprise, it's not as well established with SMBs, or with consumers for that matter.


An Iomega acquisition would also give EMC an entry into the consumer market, opines an Enterprise Storage Group analyst, likely through an online backup strategy or a "cloud" storage option. Says the analyst:

The thing is, EMC isn't Dell and just can't show up. They have to go in under the guide of a well-known brand like Iomega.

The two companies already have a solid partnership, notes the story, with Iomega selling EMC's Retrospect Express software and its SMB-oriented Lifeline products.


A possible snag is Iomega's pending deal to purchase Chinese hard-disk-drive manufacturer ExcelStor. But, as IT Business Edge blogger Susan Hall wrote last month, the Iomega board seemed open to halting the ExcelStor acquisition in order to smooth the way for a purchase.


EMC has a well-deserved reputation for innovation. Earlier this year, it introduced solid-state flash drives, and it's also focusing on the emerging market for cloud storage.

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