April 06, 2011, 3:53 PM — In what is more an internal cost-center shuffle than an acquisition, VMware acquired online storage company Mozy from EMC -- parent company of both VMware and Mozy.
Since Mozy is a consumer-oriented online storage company and VMware is an enterprise-oriented virtualization- and cloud-computing software developer, it's hard to see why it's better having VMware own it than EMC. EMC, you may have heard, is involved in storage in some way.
"We believe that, by being directly engaged with the delivery of such a service, VMware will further ramp our own cloud-related learning and accelerate new IP, scale, and capabilities into the products that we provide to our customers and public cloud partners," Steve Herrod, CTO for VMware, wrote in a blog post about the deal.
On one hand, having a popular cloud- or SAAS company among its assets makes some sense, considering VMware's relentless efforts to convert both end-user companies and the tech industry to worship of the cloud.
Smaller businesses are more likely to buy sophisticated IT services by subscription than in traditional ways, so having something smaller than a data-center-quality storage offering can't hurt VMware.
On the other hand, Herrod wrote that he was impressed with Mozy's scalable, highly available data-centers "fronted by elegant, user interfaces across many client types. This is the foundational architecture for the many cloud-based services being delivered today."
True. It's also what VMware is supposed to be in the business of building and selling. Does it really need to get that from Mozy?
Herrod also likes the chance to add "Mozy's data compression, synchronization, client integration and analytic tools" to VMware products, which makes more sense than needing Mozy to teach VMware how to build large virtualized IT infrastructures.
The counterweight blog from Mozy COO Charlotte Yarkoni said EMC will continue owning the Mozy business, but VMware will run it, hire some of Mozy's staff and integrate some of its technology into Mozy's as well as vice versa.
That part is even more odd. VMware and EMC already operate under a series of arms-length agreements that allows each to sign up and work with partners in its own line of business without seeming to favor the other too overtly. EMC does a lot of business with Microsoft, which doesn't like VMware very much, for example.