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VMware announced on Wednesday (1) an agreement to buy the hyperconverged infrastructure startup Datrium. The acquisition of the brand would reinforce VMware’s cloud-based disaster recovery capabilities and its hybrid cloud ambitions, according to a publication on the CRN website.
The agreement for the hyper-converged infrastructure startup seeks to advance VMware’s hybrid cloud with a cost-optimized solution for backing up data in the cloud.
Datrium competes directly with Dell EMC, and the deal comes amid rumors that Dell Technologies, owner of VMware, is considering splitting up its subsidiary.
According to Andrew Wang, Vice President of Strategy and Corporate Development at VMware, Datrium will allow VMware to offer its vision of a cost-effective option to protect data stored on-premises or on Amazon Web Services infrastructure in its recovery portfolio. disaster as a service, said in a company post.
The acquisition could create an interesting competitive dynamic for VMware through Dell’s acquisition of EMC in 2016. Three of Datrium’s four co-founders have ties to EMC and Data Domain, which EMC acquired a decade ago for $ 2 , 4 billion, and Datrium competes directly with Dell EMC storage solutions.
Dell Technologies is considering the spin-off of VMware, of which it owns 81%, to ease its financial burden. Two of Dell’s largest shareholders, private equity firm Silver Lake and hedge fund Elliott Management, expressed support for this plan in relation to a potential alternative for Dell to purchase the remaining shares of VMware, according to the CRN.
Datrium’s last financing took place in September 2018, when the company raised $ 60 million to accelerate growth. According to the CRN, this round raised the total funding to $ 170 million, led by the Samsung Catalyst Fund. Samsung has a longstanding relationship with Datrium as the main supplier of SSDs.
Datrium currently partners with VMware to provide end-to-end disaster recovery for workloads running on VMware Cloud on AWS. “The Datrium DRaaS solution offers an innovative and cost-effective approach with incremental backups that are efficiently encrypted, deduplicated and stored on AWS S3,” said Wang.
Datrium will not only place this unique IP under VMware’s roof, but also a team of specialized engineers who can help extend VMware Cloud’s alliances with leading cloud providers with business continuity solutions that consistently operate on hybrid infrastructure, wrote on the blog John Gilmartin, Senior Vice President and Manager of the VMware cloud platform business unit.
Last year, Datrium began shipping its Automatrix platform to provide integrated computing, primary storage, backup, disaster recovery, encryption and data mobility. “We are a multicloud platform and we did the hard things that no one else did,” Tim Page, Datrium’s CEO, told CRN in May 2019.