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December 13, 2010

Dell acquires Compellent; a Compellent CEO Q&A

Dell has agreed to acquire storage virtualisation player Compellent for $960m. But will it upset its EMC apple-cart?

By Jason Stamper

Phil Soran Compellent

Phil Soran, CEO of Compellent.

Dell has announced the $960m acquisition of virtualised storage player Compellent, as it beefs up its technology that competes with vendors like its own partner EMC.

CBR caught up with the CEO of Compellent for a Q&A in late October.

Dell called out Compellent’s tiering and thin provisioning as motivation for the deal but it also said it would be accretive to non-GAAP earnings in fiscal 2012.

Dell suggested in its press release that its long-standing relationship with EMC would not be killed off by this latest acquisition: "Upon closing the transaction, Dell will quickly make Compellent an integral part of its industry-leading storage portfolio, including PowerVault, EqualLogic and Dell/EMC," it said. "Compellent expands Dell’s award-winning storage solutions, which now offers customers innovative systems and choice at every storage tier, from direct-attach to highly-virtualized SANs."

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Dell also plans to keep Compellent’s existing operations in Eden Prairie, Minn., and will invest in engineering, support, operations and sales capability to grow this business, it claimed.

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