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EMC buys Kazeon to integrate e-discovery platform

EMC’s second acquisition this week is less surprising than the first.

A day after buying application image management vendor FastScale Technology on the opening day of VMWorld Monday, EMC today said it would acquire e-discovery software vendor Kazeon Systems. While FastScale is more of a server virtualization play, Kazeon is a mainstream storage product and gives EMC a path to integrating its SourceOne archiving software platform.

When launched in April, EMC’s SourceOne consisted of Email Management (formerly EmailXtender) for email archiving, Discovery Manager for discovery and legal holds on email archives and Discovery Collector to automate data collection in multiple repositories. Discovery Manager and Discovery Collector were separate products, although EMC’s marketing reps suggested they could be integrated over time.

That’s where Kazeon comes in. Lori McKellar, a marketing manager for EMC’s Content Management and Archiving Division division, says EMC bought Kazeon because it handles end-to-end e-discovery.

“It addresses the full e-discovery process,” she said. “It has the ability to cull and review information as well as collect information, and handle litigation hold. It’s the most complete offering.”

EMC already sells Kazeon to add e-discovery capabilities to its Centera CAS and Celerra NAS storage systems. McKeller said Kazeon will become part of the SourceOne platform when the deal closes later this quarter.

EMC currently uses Kazeon rival StoredIQ for its Discovery Collector, but that will almost certainly change. StoredIQ sent word via email after the acquisition news broke that it “still maintains a partner relationship” with EMC and will “continue to work on opportunities” but it appears that relationship and those opportunities will not be the same.

“Kazeon is our primary vendor now [for e-discovery],” McKellar emphasized.

Kazeon has about 80 employees and 275 customers, raised $60 million in funding and signed an OEM deal with EMC rival NetApp during its early days. EMC did not disclose the purchase price, but CEO Aaref Hilaly of Kazeon competitor Clearwell Systems — either playing reporter, or trying to set a price for his company — wrote on his blog the Kazeon price tag was $75 million.

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