"They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety," in the immortal words of Benjamin Franklin. Well, Data Domain
The little expert on highly efficient and cost-effective data storage is torn between a sure thing and a temptress. NetApp
In plain English, NetApp's offer gives Data Domain a chance to become a vital part of an up-and-comer in the storage world. Shares in lieu of cash don't feel as wrong when you're looking at an underdog trying to cement a place in the dynamic tech industry. Grab a few NetApp shares and take part in this rising star's growth story! It's the Silicon Valley mentality, reflecting the two companies' close physical relationship.
EMC is a distant giant with headquarters in Massachusetts. It's old money buying new growth with nothing but cash, and the board seems to fear becoming a small cog in EMC's huge, faceless machine. This feels almost like IBM
The official position goes something like this: "No thanks, EMC. Data Domain is quite happy with its current fiancee and intends to go through with this marriage."
So, if EMC truly wants Data Domain, expect to see a new offer with revised terms. There'd have to be a real commitment and signed guarantees that the deal would be completed as promised. Simply raising the offer price slightly wouldn't move the Data Domain board. EMC's VMware
Old Ben might not agree with Data Domain's strategy, but the company is taking the liberty to choose security. The ball is firmly in EMC's court, but the culture clash might be too much to overcome.