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November 16, 2012

Dell storms ahead with Gale Technologies acquisition

Infrastructure management software firm will form part of new Enterprise Systems & Solutions division

By Steve Evans

Dell has announced a deal to acquire Gale Technologies, a provider of infrastructure automation software. Financial details were not disclosed.

Santa Clara, California-based Gale Technologies is a privately-held firm founded in 2008 and backed by Crescendo Ventures. Its technology enables companies to deploy and manage private and hybrid cloud environments.

Dell said Gale’s products can enable enterprises to combine compute, network and storage components into a single optimised application, virtual desktop infrastructure or private cloud platform.

"Today, enterprises need solutions that enable operational benefits of speed, efficiency, and flexibility in the allocation and use of resources," said Marius Haas, president, Dell Enterprise Solutions Group. "Gale Technologies integrates well with our Active Infrastructure family, and provides an intuitive, flexible and comprehensive foundation for application, virtual desktop infrastructure and private cloud deployments for our customers."

As part of the acquisition, Dell will be creating a new business division, called Enterprise Systems & Solutions, which will focus on selling converged infrastructure technology into big businesses.

Dario Zamarian, who was previously in charge of Dell’s network business, will take charge. He will report into Marius Haas. Alcatel-Lucent’s Tom Burns will take over Zamarian’s old role at Dell, the company said.

The news comes a day after Dell announced disappointing quarterly results, with revenue down 11% to $13.7bn and profit down a massive 47% to $475m. However good news was found in Dell’s Networking division, where revenue rose 11%, suggesting Zamarian knows what he is doing. The company also said enterprise services revenue was up 3% during the quarter.

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This acquisition echoes Cisco’s purchase of cloud management firm Cloupia, announced just yesterday. Some of the biggest names in technology are aiming to become a one stop shop for IT infrastructure, selling end-to-end hardware, software and services as one package.

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