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October 14, 2014

EMC acquiring OpenStack startup Cloudscaling

Purchase will enable OpenStack to run on EMC hardware.

By Ben Sullivan

EMC is acquiring a cloud startup in an effort to boost its cloud storage products portfolio.

Cloudscaling, which uses OpenStack to connect users on public clouds, will be picked up for less than $50 million, according to people familiar with the matter.

EMC hopes to use Cloudscaling to offer a better free software tools. Dave Farmer, a spokesperson at EMC, said that acquisition will "further extend our breadth of cloud platform support".

EMC will hold a cloud event on October 28, where it is expected the acquisition will be announced properly.
By acquiring an OpenStack firm, EMC will be able to attract more customers who want to use the open source software with EMC’s hardware.

It was last month when HP bought Eucalyptus for its Helion cloud platform, followed by Cisco snapping up Metacloud – another OpenStack service.

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