14 billion acquisition of EqualLogic, Dell

Keywords: Dell EqualLogic Dell EqualLogic acquisition

6 November International reported Monday, Dell announced plans to 14 million cash acquisition of EqualLogic. Plans to strengthen its data storage business to expand its market.

EqualLogic iSCSI standards based development of a storage area network (SAN) systems. ISCSI standard to an existing Ethernet network, this means that enterprise deployment via fiber-optic network is to reduce costs.

The world brand laboratory reports, Dell CEO Michael said in a statement, in the next few years, our customers will experience the history of the most significant data growth, leading iSCSI revolution will help Dell helps customers drive it systems simplify and virtualization. Virtual software enables customers to on the same computer to run multiple operating systems simultaneously.

Dell has put more attention to the store. Dell plans will EqualLogic's technology into its next version of the Dell PowerVault product line, and in current and future products continue to retain the EqualLogic's brand. September, Dell has introduced an SME-oriented storage consolidation system, the SAN array products is also based on iSCSI standards.

Jefferies analyst Bill said, EqualLogic storage market is a relatively small company, but in the emerging iSCSI IP areas, it is second only to EMC, Network Appliance and ranked third. Dell to sell a large number of products for SMEs, these enterprises will find easily in their existing Ethernet network to deploy iSCSI products. Dell hopes to use new technologies to expand this business.

IDC estimated that by 2011, iSCSI system market will grow to us $ 6 billion. This year's first nine months, revenues of EqualLogic 9090 million, compared with $ 4480 of doubled. Bill said that this growth will improve the Dell's financial performance. Storage business currently only Dell sales revenue by 4%.

This transaction will Dell this fiscal fourth quarter or the next fiscal year beginning in the first quarter.

Bill said, EMC 16% revenue comes from cooperation with Dell, its 35% Clarion products are sold by Dell. As the last fall into the storage market, as well as the acquisition of EqualLogic, Dell's focus may shift to sell their products, not to sell products.

Charles River Ventures general partner Christopher, EqualLogic, this transaction marks the company's investment by venture capital firms selling the highest price. However, he also noted, do not expect many new enterprises will also be so lucky.