>Dell To Enter Enterprise Storage Space
and then some ... <vbg>
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Dell Will Acquire Storage-Area Network Vendor
09/08/99, 7:03 p.m. ET
By Martin J. Garvey
InformationWeek
In a bid to strengthen its position in the enterprise-storage market, Dell Computer has agreed to acquire storage-system vendor ConvergeNet Technologies in a stock swap valued at $340 million.
Announced after the stock market closed Wednesday, the deal is expected to go through within 60 days. Dell will take a one-time charge against earnings for the acquisition. Both companies' boards of directors have already approved the deal.
Founded in 1997, ConvergeNet has focused on the storage-area network market. Dell, with its PowerVault line of enterprise storage systems, has recently been showing a heightened interest in the storage market. Once the ConvergeNet technology is folded into the PowerVault line of products, Dell will have the heterogeneous server support of other storage vendors, such as EMC.
David Hill, a senior analyst with Aberdeen Group, was somewhat surprised by the acquisition, given that ConvergeNet hasn't yet shipped a product. But Hill says the startup had a solid strategy. "ConvergeNet's Storage Domain Manager controls and secures the flow of data between servers and the storage system. Such management will be essential to SAN implementation," he said. |
