The just announced EMC bid for $1.8 billion dollars is amazing in that it appears that it's just another PIECE of the deduplication portfolio for EMC.
That's an expensive piece.
It's an especially expensive piece when you consider that Quantum has a market cap of just $246 million... and already owns the IP of EMC's current deduplication solution.
So why didn't EMC try to buy Quantum at a fraction of the price? It can't be for Data Domain's intelectual property. When Data Domain and Quantum signed a cross-license agreement in early 2007, Data Domain cautioned even then that it "may not be able to enforce its intellectual property rights".
So why would EMC try to buy Data Domain? Market share? Credibility? Data Domain's brand recognition?
While the party line at EMC is that it is simply adding to it's portfolio, that still doesn't explain the strategy.
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