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NetApp has announced that it has completed the purchase of the Engenio external storage systems business from LSI Corporation in an all-cash deal for $480-million.

With the completed transaction, NetApp gains an original equipment manufacturer (OEM) business that generated revenues of $705-million in 2010, and further enables NetApp to diversify its channels to market and expand its market reach.
"NetApp is excited to deliver product and technology innovations to support our OEM business partners and help them effectively meet customer demand for managing and storing critical data," says Tom Georgens, president and CEO, NetApp. "NetApp has a strong reputation as a partner-oriented company, and the OEM business is integral to our strategy to continue to generate industry-leading growth."
Rick Scurfield, VP and GM of NetApp's OEM business, will oversee and manage the OEM partnerships and business globally.
Juan De Zulueta, who has over 15 years of channel leadership experience and is currently a vice president in EMEA's partner organisation, will become vice president of OEM business operations in EMEA.
Mike Reilly will be director of OEM field sales for the Americas, and Bunji Kawanishi will be director of OEM field sales for APAC.
As part of the transaction, NetApp also gains access to a talented team that is skilled at managing a mature, proven OEM business model, further enhancing continuity during the transition. Additionally, the OEMs will benefit from NetApp's award-winning service and support organisations.
"Building on this announcement and our established relationship, IBM and NetApp remain committed to supporting and enhancing clients' IBM DS3000, DS4000 and DS5000 environments. New capabilities announced by IBM, such as leadership 10G iSCSI support, demonstrate our commitment to continue enhancing these current OEM-based offerings," says Douglas Balog, VP and business line executive, IBM Storage.
Tony Carrozza, senior VP worldwide sales for SGI, says "We are excited with the opportunity to work closely with NetApp as an OEM storage partner. NetApp is an industry-leading storage provider and as a result brings a level of innovation and expertise to the table that will help us differentiate our storage solutions in the market."
"NetApp has proven that it is a leader in its field, and Teradata's customers will benefit from the new and expanded relationship. Working closely with NetApp, we will continue to deliver products that exceed our customers' high performance requirements," says Scott Gnau, chief development officer, Teradata Corporation.