EMC acquires services provider

By Ann Silverthorn

—EMC is aggressively ringing in the new year with its second major acquisition of 2006. Internosis, a provider of managed IT services in Microsoft-oriented application environments, will now be known as EMC Microsoft Practice, a part of the EMC Technology Solutions Group.

Last week, EMC purchased information and grid software technology from Acxiom for $30 million ( see EMC buys grid technology). Financial details of the Internosis acquisition were not released.

As the new EMC Microsoft Practice, Internosis will continue to provide IT professional services, which integrate Microsoft and related technologies for commercial companies and the US government. The new Microsoft Practice will leverage the benefit of EMC's global footprint and infrastructure. Internosis employees have been folded into EMC.

Over the past four to five years, EMC has been pushing professional services, extending its capabilities to deliver tightly integrated solutions around an application infrastructure, according to Todd Pavone, EMC's vice president of global solutions. "Six or seven years ago, our professional services organization was focused on implementing our products," says Pavone. "During this evolution we've expanded into a more traditional services business."

Pavone says EMC created a road map that showed where it could go to increase its services capabilities to get to market faster. Those areas included applications, compliance, and content management.

"Five or six years ago, infrastructure wasn't as relevant to application areas as it is today, but it's very relevant now and critical when you're doing upgrades, migrations, or implementations of Microsoft applications," says Pavone. "Customers traditionally work with a Microsoft partner and then separately with their infrastructure partner. We believe by combining these skill sets into one, there's more of a one-stop-shop approach. Customers can work with us and get both application skill sets in Microsoft and infrastructure from EMC."

Internosis' portfolio cuts across four areas: applications strategy, application development, infrastructure services, and desktop managed services. "EMC had a small subset of that, but we didn't have a robust portfolio across the whole lifecycle of applications," says Pavone.

The deal fits well with a number of EMC's information management solutions, which range from specific document management applications to wider-ranging compliance and ILM offerings, according to Charles King, senior analyst, application infrastructure, at the PUND-IT consulting firm. "Internosis' popularity among government
clients [about half of the company's customers are federal agencies] bodes well
for EMC's burgeoning public sector solutions."

King adds that, as the market leader in Windows-based virtualization, "EMC is in a position to expand its influence well beyond enterprise storage. ...EMC's acquisition of Acxiom further expanded the company's systems-management offerings and should also allow EMC to deliver bundled grid solutions with Microsoft-focused partners."

This article was originally published on January 11, 2006