According to Dell, EqualLogic’s internet small computer system interface (iSCSI) SAN technology will give Dell leadership technology in the fastest-growing iSCSI and SMB storage markets. Following the acquisition, Dell will add EqualLogic’s PS Series iSCSI appliances and technology to its portfolio of PowerVault and Dell/EMC storage arrays. Storage is one of the Dell’s fastest-growing businesses accounting for $613m of its $14.8 billion revenues for the quarter ended August 2007.
The company has not yet clarified its plans to re-brand EqualLogic’s products, but says that it will still sell them through EqualLogic’s existing 500 channel partners.
This acquisition is a key part of our strategy to simplify IT and to drive virtualization from Dell’s enterprise portfolio, commented Mike Arterbury, director of Storage Operations at Dell.
We are going to use EqualLogic as a channel brand and continue to strengthen the channel programmes they have in place, said Michael Dell, founder and chief executive of Dell.
Of late, Dell has limited its acquisitions to services organizations and consumer gaming vendors. EqualLogic’s acquisition, the largest in Dell’s history, is the second buyout of a storage vendor after ConvergeNet, which was acquired in 1999 for $348m.
Until now, Dell was reselling EMC’s data storage products. Dell accounted for about 15% of EMC’s total revenue for the quarter ended June 2007. Following the acquisition, Dell’s sourcing from EMC may get affected.
This acquisition highlights the increasing focus on the SMB SAN market. Dell’s competitor HP reorganized its HP StorageWorks division in April 2007 to add a dedicated unit to target the SMB market. It also launched AiO1200, an upgraded All-in-One (AiO) storage model, designed for SMBs. Similarly, Network Appliances has launched StoreVault S300, a new iSCSI SAN and NAS box, in October 2007.
Source: ComputerWire daily updates
