EMC Gobbles Up Cloud Computing Start-Up Cloudscaling For $50 Million OpenStack Play

EMC, a major player in IT storage hardware solutions for data backup and recovery chores headquartered in Masschusetts, has reportedly agreed to acquire Cloudscaling Group, a San Francisco-based startup that provides on-premise elastic cloud infrastructure solutions, for less than $50 million.

That figure comes from Bloomberg and the "people with knowledge of the situation" that it spoke with. The sources asked not to be identified because the transaction hasn't been completed or made public knowledge yet, though it's also being reported that the deal has been confirmed by EMC spokesperson Dave Farmer.

Image Source: Flickr (Bob Mical)

"To further extend our breadth of cloud platform support, including VMware and others, EMC has signed a definitive agreement to acquire Cloudscaling," Farmer said, adding that more details will follow during a scheduled cloud event on October 28.

This is largely an OpenStack play. Cloudscaling specializes in helping companies manage large numbers of computers that are linked together by OpenStack, a free and open-source software cloud computing platform typically deployed as an infrastructure as a service (IaaS) solution.

The acquisition represents a relatively inexpensive way for EMC to make sure its storage products work seamlessly with OpenStack in cloud computing environments, thereby giving companies further reason to link their hardware with the free software.