Veritas Software will continue to benefit from its independence in the storage software market as rival EMC closes its deal to acquire Legato Systems, said Veritas chief executive officer Gary Bloom.
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Bloom added the acquisition will not change the dynamic storage market or Veritas' market position. He noted Legato brings only about 10% of the market share to EMC, and is ranked fourth in the storage market after Veritas, IBM and Computer Associates International.
"But the acquisition eliminates Legato's independence as a software company," Bloom said. "It is now associated with a hardware agenda, which makes it very difficult to sell."
He added that the consolidation has reduced the number of independent storage software suppliers, strengthening his company's independence as a result. Neutrality provides a better position for interoperability, as compared with other hardware vendors who tends to provide software that works best with their machines.
Commenting on Veritas' own moves into the application performance management arena through the acquisition of Precise Software Solutions, Bloom said it is a natural extension into an adjacent market. It has also raised attention among the chief information officers, who tends to focus on applications.
"[The expansion] elevates our roles among the CIOs as a company that will drive performance in applications and infrastructure," Bloom said.
Shimon Alon, senior vice president and the former CEO of Precise, said i3, Precise's application performance management flagship product, detects and corrects problems in the application layer. The acquisition completes Veritas' plans to become an enabler of utility computing.
Veritas is also expanding its support for Linux. Since January 2001, the company has launched the Linux version of its backup software, virtualisation software and recently the clustering software. Ranajit Nevatia, director of Linux Strategy at Veritas, said the company aims to allow all its products running on some version of Linux by end of 2004.
With a high cash availability of $2.4bn, Bloom said his company has a strong appetite for making acquisitions and investments for geographical expansion.
He added that the company is anticipating an engineering centre in China, but no specific plans were made available. At present, about 30% of product development is done overseas, through centres in the UK, Israel and India.
Sheila Lam writes for Computerworld Hong Kong