Sunday, August 23, 2009

EMC Rumored Buying eDiscovery Vendor Kazeon

Recent post on BNET...

EMC looks set to expand its document management and storage business with the adjunction of ediscovery specialist Kazeon Systems.

EMC and Kazeon are already partners, so EMC knows exactly what it’s getting, and an acquisition would ensure that Kazeon doesn’t get snapped up by rivals like Oracle, HP or Microsoft, which also provide application suites intended to help enterprise customers manage their vast stores of data. The deal also illustrates the success that vendors are having in convincing enterprise customers that ediscovery software can be a more strategic tool than simply a way to ensure compliance with government regulations and litigation rules.

In fact, EMC also partners with two other ediscovery vendors, Clearwell and StoredIQ, but those vendors sell more limited point solutions geared uniquely to legal applications, while Kazeon has more rounded expertise in enterprise search. Kazeon is thus a more compelling acquisition because EMC can position its search technology and expertise as a more strategic application and expand further into enterprise search, which is one of the few sectors of the software industry that didn’t miss a beat despite the downturn.

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