Data Warehousing

EMC Acquire PostgreSQL Database Warehousing Company Greenplum

Jessica Thornsby

Is EMC attempting to become the next one-stop shop for integrated hardware and software stack?

Information infrastructure solutions provider EMC Corporation,
today announced they have signed a definitive agreement to
acquire Greenplum, whose software is based on the open source
PostgreSQL database.

Greenplum provides data warehousing technology by leveraging a
“shared-nothing” massively parallel processing (MPP) architecture.
Greenplum customers include T-Mobile, NYSE Euronext, Skype, and
Equifax. According to the press release, Greenplum will become the basis of a
new data computing product division within EMC: ‘Data Computing
Product Division.’

James Kobielus, a data management analyst with Forrester
Research, has predicated that the acquisition will see EMC
join Oracle and IBM as “integrated one-stop hardware/software
stack” DW appliance vendors, who attempt to deliver a complete data
warehousing solution. But, is this a direct attempt to bring EMC
into competition with Oracle and its Exadata product line?

Chuck Hollis, Vice President of Global Marketing CTO at EMC,
dismisses this idea. In a blog post, he stated that EMC’s acquisition of
Greenplum is not an attempt to directly compete with Oracle’s data
management-based closed stack. He points out that Greenplum is not
a general purpose database like Oracle’s, but instead targets
large-scale data warehouse and business analytics. Enterprise
Strategy Group analyst Brian Babineau seems to support Hollis’ statement, summarising
EMC’s acquisition as attempting to fill “a void in the market from
a software perspective to solve the database performance
challenge,” while Oracle have instead opted for the “hardware

James Kobielus has his own, non-Oracle theory on why EMC have acquired
Greenplum. He sees an alignment between EMC’s cloud offerings and
what he calls “Greenplum’s enterprise data cloud push,” which could
be the reason behind the acquisition.

The acquisition will be an all-cash transaction, and is
currently expected to be completed in the third quarter of 2010.
According to the EMC press release, the acquisition is not expected
to have a material impact to EMC GAAP and non-GAAP EPS for the full
2010 fiscal year.

comments powered by Disqus