Chris,
Seagate Software sells backup software for small workgroup NT platforms. These products sell for around $300 per copy, and are sold to value added resellers, who then sell to distributors. This is two-tierd distribution - no direct sales people involved. Veritas and Legato sell into the high-end Unix market, although the products they sell can support centralization of NT servers into their backup solutions. They sell directly to the IT people, because these installations are large in scale. From what I understand, LGTO doesn't even go after the low-end NT market - they can't, they don't have the two-tiered distribution channel, and they don't want to have a direct sale person going after a $300 sale. Cheyanne, a division of CA, is the main competitor in that market.
Veritas now has a tough management issue: channel conflict between its direct sales force and its new two-tiered distribution channel. This can be handled, but it will take a good deal of effort. Integration of the Seagate NT product into the enterprise product Veritas sells will also be a challenge. The purchase adds a new market for Veritas, but not a market Legato competes for.
So, I guess I'm still not sure how the deal has any effect at all on LGTO...
Mark K.
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