Legato Buys OTG Software

Storage vendors join together

Two storage software vendors joined together today when Legato Systems Inc. announced its intention to purchase OTG Software Inc.

The merger is subject to shareholder approval, and thecompanies expect it will be completed around June of this year.

The companies pitch the merger as a way to leveragetheir individual product offerings and sales channels. Bill Cable, executivevice president at OTG, says there is “virtually zero product overlap” betweenthe two companies, yet their expertise is complementary.

Legato’s product offerings focus on managing storeddata on backend systems such as databases. It is known for backup-and-recoveryproducts like NetWorker and management tool such as AlphaStor.

On the other hand, OTG has specialized managing data infront office applications like email and specialized applications for verticalindustries such as health care and financial services.

OTG and Legato’s channel partners are similarlydifferent. OTG has focused on developing relationships with regional systemintegrators and OEMs that target specific industries, while Legato has reliedprimarily on direct sales. Cable believes the combination of channel partnerswill help them expand their reach in the marketplace.

OTG will keep its offices in Maryland and no majorchanges are expected in its product lineup. "Everything is business-as-usual,"Cable says.

About the Author

Chris McConnell is Product and Technology Editor for Enterprise Systems.