Exclusive: Dell Technologies Is Selling This Cloud Group
#DellTechnologies is selling #Spanning, a cloud backup company, to private equity firm #InsightVenturePartners. Terms of the deal were not disclosed. The move comes seven months after #Dell completed its $63 billion purchase of #EMC, and three years after the then-independent EMC bought Spanning for an undisclosed amount. Spanning’s claim to fame is helping businesses backup and store data associated with popular subscription software services such as #Google G Suite and #Microsoft Office 365. Going forward, Spanning and its 56 employees, will operate as an independent entity out of Spanning’s Austin, Texas headquarters but Dell Technologies will keep reselling Spanning’s services, Jeff Erramouspe, Spanning’s new chief executive told Fortune in an interview. Erramouspe was formerly vice president and general manager at Spanning. Spanning’s model of selling subscription-based software differs from EMC’s more hardware-focused approach. Within Dell Technologies, EMC focuses on data center infrastructures, including storage and servers. Insight Venture Partners was particularly interested because it has invested in companies like New Relic (NEWR, +0.56%) and Shopify—both prominent in the “Software-as-a-Service” market for some time, said Insight vice president Phil Vorobeychik.