From The Rumor Mill -- IBM To Buy Diligent

Posted by Howard Marks, Mar 23, 2008 04:50 PM

Israeli business news site Global Online reported last week that negotiation for IBM to buy data deduplicating VTL software vendor Diligent Technologies for $200 million had reached an advanced stage. http://globes-online.com This would follow on IBM's acquisition of Israeli grid storage startup XIV a couple of months ago. Considering that XIV Executive Chairman Moshe Yanai remained a director of Diligent after it was spun off from EMC Israel in 2002, he just may have tipped his new bosses off to a good deal.

IBM, like EMC and Sun, sells FalconStor's VTL software under an OEM license bundled with IBM hardware. Also like the other three letter OEMs, IBM has to date not announced that its also OEMing FalconStor's deduping software. With the acquisition of Diligent, IBM will have a deduping VTL of its own differentiating it from SUN and EMC and annoying HDS to no end, as it's pretty deeply in bed with Diligent.

Since no one at either company has anything more enlightening than "No comment" to say, we'll just have to wait and see what happens.

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