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EMC Sells Syncplicity, Its Enterprise File Sync And Share Business

By - Source: Toms IT Pro

EMC's Syncplicity, an on-premises focused enterprise file sync and share (EFSS) solution, has been acquired by Skyview Capital. EMC retains a financial interest in Syncplicity, and the solution will be offered as part of the EMC Select program.

The new Syncplicity will be led by Jonathan Huberman, a former EMC Consumer and Small Business executive who will be Syncplicity's new CEO. He is bullish on the prospects of Syncplicity and the growth in the market.

According to Huberman, the decision to acquire Syncplicity was predominantly driven by two things: added commercial focus through a dedicated sales force, and the ability to invest further to accelerate its engineering and technology aspects.

Much of the heavy lifting has already been completed by EMC; it is now a matter of market penetration and execution. Near-term, Syncplicity leaders, including Huberman and Head of Customer Success for Syncplicity, Gaurav Verma, will speak with existing customers to reinforce their commitment and validate that Syncplicity is meeting their needs.

MORE: EMC Syncplicity Review

In the three years that Syncplicity was owned by EMC, it gained market traction with customers in the life sciences, education, media and entertainment industries. However, the EFSS solution faced challenges to its perception of impartiality, and internal competition from tools within EMC's portfolio, notably AirWatch Mobile Content Locker (MCL), which was acquired last year by EMC-owned VMware, and Documentum. There was also some customer confusion about where Syncplicity "lived" within the EMC Federation, at times falling into the Core (storage) and later the Enterprise Content Division (ECD).

Now independent, Syncplicity will be free to develop alliances and relationships with leading storage, security, and managed service providers. This will further enhance its value proposition and customer benefits.

Although the EFSS market has been growing, there has been limited consolidation. Much of the industry movement has been towards partnerships and alliances, notably Box Inc's recent decision to offer storage in IBM SoftLayer data centers, along with various providers improving security and addressing enterprise concerns with snooping through the use of customer-managed encryption keys.

To date, EMC has grown through mergers and acquisitions, most recently acquiring Virtustream for $1.2 billion in late May. This is the company's first divestiture of the year. EMC shares to date have been off by 11.53 percent through July 6, closing at $26.31. Financial terms of the Syncplicity sale were not disclosed.