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Exam Number : LE0-583
Exam Name : Legato Certified EmailXtender and EmailXaminer Administrator (LCEXA)
Vendor Name : Legato
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Legato LE0-583 braindumps

 

Legato Acquires OTG, Makes Channel Play | Killexams.com Resources

Legato, based mostly right here, is without doubt one of the true independent storage administration utility companies, with salary of about $240 million in 2001. "independent" means that it is not related at once to a storage hardware seller.

Rockville, Md.-based OTG is a $sixty five million developer of application geared toward increasing the efficiency and protection of selected functions.

the two will make a extremely enjoyable mixed company, said Dan Carson, vice chairman of advertising at Open programs solutions, a Yardley, Pa.-primarily based storage professional answer provider that works with both providers.

"One has certainly a right away revenue mannequin, while one has a distribution model," Carson stated. "The products complement each and every other. or not it's an excellent fit."

Jim Chappell, Legato's senior vp of business building, talked about an conclusion-user want--to resolve facts protection problems from an application focus--changed into a key driver to the acquisition.

"This helps extend their application-oriented capabilities and carry solutions that permit their consumers to put in force seamless suggestions entry and software-competent applied sciences," Chappell mentioned.

The acquisition will help push Legato to take a much bigger role within the channel, stated Chappell. Legato currently sells about 60 p.c of its products by the use of indirect channels, together with OEMs and solution suppliers, and looks to raise that determine to 75 p.c. "this is an acquisition that moves us in that path," he mentioned.

OTG has all the time concentrated on indirect channels, and about 85 percent of its enterprise comes from over 600 channel companions in the distribution, OEM, and ISV space, talked about bill Caple, govt vice chairman of OTG.

OTG has relationships with most of Legato's opponents, however not arch-rival Veritas, stated Caple. despite the fact, Legato's competitors are also partners in a market marked by means of strong "coopetition" between carriers, he pointed out. "Ninety-9 % of the corporations they have relationships with even have family members with Legato," he observed.

in response to the terms of the deal, anticipated to shut in about ninety days, Legato will acquire all the astonishing shares of OTG, with every OTG share valued at 0.6876 of a share of Legato inventory plus $2.50 in cash. once the deal is closed, OTG's shareholders will cling about 21 p.c of Legato's shares.

Legato is coming off a dry spell in terms of profitability. besides the fact that children, despite whether or now not the company obtained OTG, Legato was already expecting to be profitable within the second half of this year, said Chappell. OTG broke even remaining quarter, and is anticipated to put up a income this quarter, spoke of Caple.

Legato is at present the ninth greatest storage management software dealer, in keeping with a analyze unlock last yr by Gartner Dataquest. If the two had been mixed final year, it will had been the No. 6 supplier. The total storage management software market was price about $5.three billion in 2000, Gartner Dataquest pointed out.

traders expressed effective disapproval of the deal, which become unveiled before the outlet of alternate on Thursday. Legato's shares fell over 19 % on the day to $10.12 per share. however, buyers drove OTG's stock expense up about 5 % to shut at $9.66 a share.


 



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