The only challenge to this? I don't know how EMC can run Data Domain as a separate organization with all these other competing product lines. It would seem a little odd for Avamar guys and Data Domain guys fighting over accounts. My guess is that EMC will have to give the Data Domain team the complete backup portfolio.
The second question: Will NetApp respond?
In my opinion, NetApp will have to respond now with a similar offer. My sense is that Data Domain as an organization was far more comfortable getting bought by NetApp than they were by EMC and they will do everything they legally can to help NetApp win this deal.
This has clearly gotten out of the price range of many if not most technology companies, but it now puts pressure on some of them to do something. A huge beneficiary of all this focus on storage optimization are going to be smaller companies like Ocarina Networks, Storwize, Riverbed, Exagrid, Permabit and others.
In a future entry I'll explore the subject of where the rest of the industry gets their storage optimization technology from.
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