Enterprise storage hardware giant EMC is buying Cloudscaling, one of the earliest startups to sell a distribution of the OpenStack open-source cloud software.

A Bloomberg article today reported on the deal’s occurrence, putting the transaction at less than $50 million. Neither CloudScaling nor EMC would immediately comment, only pointing to the Bloomberg report.

The move comes after another enterprise hardware heavyweight, Cisco, bought OpenStack startup Metacloud. Meanwhile VMware recently announced an OpenStack distribution of its own.

Today’s EMC deal brings with it a visible cloud executive in Cloudscaling founder and chief executive Randy Bias, who has consistently proven vocal in his belief in OpenStack but emphasized the importance of integrating with the application programming interfaces (APIs) of Amazon Web Services, the largest public cloud around. Recently HP bought Eucalyptus, a cloud startup that supported AWS APIs in corporate data centers.

Ultimately the EMC deal could have the effect of ensuring companies keep buying EMC gear even if they want to run OpenStack in their data centers and circumvent, say, VMware’s proprietary cloud software.

San Francisco-based Cloudscaling started in 2006 and raised a $10 million round last year. Investors include Trinity Ventures, network gear maker Juniper, and storage vendor Seagate.

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Cloudscaling is the leader in elastic cloud infrastructure. The company’s core product, Open Cloud System (OCS), is the most advanced OpenStack-powered cloud infrastructure software availa... All Cloudscaling news »

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EMC is a global leader in enabling businesses and service providers to transform their operations and deliver information technology as a service (ITaaS). Fundamental to this transformation ... All EMC news »

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Dan Scholnick is General Partner at Trinity Ventures. He is working at Cloudscaling as Board Member Since September 2011 and MongoHQ as Board Member since October 2012. Dan joined Trinity Ve... All Dan Scholnick news »

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