EMC is to acquire Washington-based network attached storage (NAS) outfit Isilon for $2.25bn (£1.39bn), or $33.85 per share as it makes its move on the cloud.
Isilon has made a strong play in the growing scale-out NAS sector, which IDC claims will reach a total value of $6bn by 2014.
EMC believes that by folding Isilon's line-up into its Atmos portfolio customers will be able to benefit from a scalable, low-cost cloud storage infrastructure for businesses that generate large amounts of data.
"Customers are looking for new ways to store, protect, secure and add intelligence to the vast amounts of information they will accumulate over the next decade," said EMC CEO Joe Tucci.
"EMC, in combination with Isilon, sits at the intersection of these trends with leading products, solutions and services to gelp customers get the most out of what cloud has to offer."
EMC predicted the combined business would hit a $1bn run rate by the middle of 2012, and also reaffirmed its business outlook for the rest of its fiscal 2010.
The acquisition, which is not expected to materially impact EMC's 2010 EPS, will be completed by the end of the year, if everything goes according to plan.