Dell flashes its cash for iSCSI SAN specialist
byteandswitch.com
<<...Dell announced plans to acquire iSCSI SAN specialist EqualLogic for a massive $1.4 billion in cash this morning, in the year's second-largest storage-related acquisition so far.
The move comes just a few months after EqualLogic filed the paperwork for an IPO expected to raise $125 million, and underlines the growing momentum behind iSCSI.
Dell recently unveiled its own iSCSI SAN in an attempt to tap into the SMB storage market, and the vendor is keen to strengthen its portfolio against rival vendors such as IBM and HP.
"Storage is the fastest growing part of Dell's portfolio, and we want to extend that," said Mike Arterbury, Dell's director of storage operations, outlining the vendor's plan's for EqualLogic's iSCSI-based SAN systems.
"We're going to run two plays here," he explained. "One is to extend the EqualLogic line and the other is to integrate that into our PowerVault product line."
Specifically, Dell is planning to build EqualLogic's technology into its 1000, 3000, and 3000i PowerVault disk arrays. Arterbury would not go into specific details about this integration plan, but he confirmed that EqualLogic's PS Series hardware could form the basis of a new high-end PowerVault device.
It appears the bulk of EqualLogic's 384-strong workforce will be moving over to Dell. "Our intent is to keep as many of them as possible," said Arterbury, although the exec could not confirm whether the EqualLogic CEO Don Bulens and his management team will be joining Dell. "We're working through the details of that right now," he added.
In a note released earlier today, analyst firm Goldman Sachs described the EqualLogic deal as a shrewd move to "jumpstart" Dell's storage business.
"EqualLogic is the standalone leader in the iSCSI space, selling its storage to a wide range of small and medium-sized businesses," wrote analyst Laura Conigliaro, adding that this will enable to Dell "to get off the ground running."...>> |
