EMC’s Internosis Buy Has Microsoft Touch

Information systems vendor EMC has acquired Internosis in a bid to improve the way it delivers professional services to customers with Microsoft-based software systems.

Privately held Internosis specializes in IT strategy, application development, IT infrastructure and managed services for Microsoft environments.

EMC, whose services revenues have been growing faster than the Hopkinton, Mass., company’s hardware and software portfolios, said the buy should prop up its ability to deliver integrated products around application infrastructure.

EMC said in a statement the Greenbelt, Md. company has some 250 service professionals to help clients minimize risk and maximize productivity around directory services, knowledge management, collaboration and end-to-end migrations.

Internosis will become the Microsoft Practice within EMC Technology Solutions, EMC’s services group. The company’s services will be marketed and sold through EMC’s North American sales channels and business partners.

“As a best-of-breed provider of services and solutions in Microsoft-oriented application infrastructure and development, Internosis significantly expands EMC’s services reach and capabilities,” said Derrell James, senior vice president of EMC Technology Solutions.

Financial terms of the deal were not disclosed, but EMC said the acquisition is not expected to have a material impact on earnings per share for 2006.

EMC has been revving its services engine to better serve customers and compete with IBM and HP. The company’s services business grew 31 percent to $1.4 billion in 2003, ballooned 49 percent to $2.1B in 2004 and has been the fastest growing business segment for EMC in every quarter this year.

Last month, the company announced data erasure services, a government-geared service and 24-7 services for its ControlCenter, Documentum and Networker software.

Services are just a part of EMC’s acquisitive targets.

The vendor last week acquired the grid software infrastructure assets of Acxiom, getting another foot in the utility computing door.

The company said it will cut about 1,000 positions and will take an $80 million cash charge in the fourth quarter of 2005 “to cover the cost of employee separation benefits.”