UPDATED 06:36 EDT / APRIL 05 2011

VMware’s Latest Acquisition Beefs up Amazon Rivalry

Mozy, the online data backup provider, was already a part of the EMC family, but has been transferred to the VMware camp, signaling their intent to become a prominent cloud IT service provider.  The move comes very soon after another EMC acquisition, RSA.   The financial details of the acquisition were not disclosed, but keeping things under the same umbrella typically makes for a smooth transition overall.

EMC’s been delivering Mozy’s services for over four years now, and this latest operational support agreement between EMC and VMware is an official stamp on the deal.  According to VMware chief technology officer Steve Herrod, “VMware will operate the Mozy service on behalf of EMC without interruption.”

But for VMware, the acquisition means a global data center network with over 1 million users, and a hefty 70PB of stored data, which EMC CEO Joe Tucci tells us is larger than Amazon’s S3 database.  “Mozy has taken the base technology that keeps you from losing your data and turned it into a scalable, fail-safe way of building out a collection of highly-automated datacentres with strong security and 24/7 operations fronted by elegant, user interfaces across many client types,” Herrod continues. “This is the foundational architecture for the many cloud-based services being delivered today.”

Added IT services is a goal that’s been incorporated into a number of cloud companies lately, as they all competitively go after client acquisition, seeking ways to out-do one another in their broadening cloud provisions.  It’s an angle for the small- to medium-sized business market, which is the widest demographic currently adopting cloud technology.  Layering in more of the disparate products businesses need for their complete cloud solution is certainly a perk for giants like VMware, as the startup sector has taken to addressing such needs on their own.

But if Mozy was already under EMC’s wing, why the official transition?  Senior analyst and founder of Wikibon lists two reasons:

VMware is taking over because:

1) it’s not a good fit within EMC – they want to sell to cloud guys like Mozy, not operate them.

2) it allows VMware to learn how to operate a big cloud so they can perfect their own offerings. VMware is trying to build a homogeneous cloud offering so it can be competitive with Amazon.

“I can see VMware OE-ming the Mozy service to CSPs that want to vertically integrate with VMware. VMware can make it attractive by offering client and mobile backup  services, integrated w/vmware. It’s another way to lock CSPs into the VMware stack. Smart move.”

Below is an interview with Mozy COO Charlotte Yarkoni, where she discusses cloud trends, where Mozy’s been and where it’s going.

Watch live video from SiliconANGLE.com on Justin.tv


A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU