Iomega buy a 'boost' to EMC, says analyst

The acquisition of Iomega will "significantly boost" EMC's presence in the home and small business market, according to research house Springboard Research.

Ravi Shekhar Pandey, senior market analyst at Springboard Research, told ZDNet Asia that EMC, by incorporating Iomega, would be in a better position to tap on opportunities in Asia, where the data storage requirements for consumers and smaller businesses are on the rise.

EMC announced last week its intention to acquire the maker of consumer storage devices for US$213 million. Commenting on the announcement, EMC's chairman, president and chief executive Joe Tucci noted that Iomega would be key to the company's strategy for the consumer and small business market.

To benefit from the acquisition, EMC needs to bring value to its target customers in these segments through thoughtful integration of products across the EMC and Iomega stable, Pandey pointed out.

"A substantial part of EMC’s success with the new acquisition will also depend on how it is able to integrate [Iomega's products] with its existing offerings for the SMB market, especially the upper end of the SMB market where storage requirements are growing more complex," he said.

Following last week's announcement, EMC announced Tuesday expansion plans for the region, as well as dedicated business units to service the small office/home office and consumer segments.