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Strategies & Market Trends : Gorilla Game Investing in the eWorld -- Ignore unavailable to you. Want to Upgrade?

To: Brian K Crawford who wrote (289)	9/10/1999 8:06:00 PM
From: Brian K Crawford	Respond to of 1817

A B2B internet pacesetter cracks open the door to a major new market for itself...this looks like a classic "Main Street" strategy to me...sell more customized product to your existing customer base that you won over in the commodity wars... I have clipped away a lot of the article, so if Dell interests anyone, be sure to read the whole thing. Brian cbs.marketwatch.com Dell makes its storage software move Sep 9, 1999 ROUND ROCK, Texas (CBS.MW) -- Dell's $340 million purchase Wednesday of ConvergeNet Technologies is likely to make for the company's strongest move ever into software. It represents a change for hardware-focused Dell, which up until now has shown little interest in having Dell-owned brain power behind its computers. For 15 years, Dell has been happy to have other company's applications at the helm of its machines. [snip] ConvergeNet will be a boon to Dell. The 120-employee San Jose, Calif.-based company focuses on a hot storage technology called storage area networks. A so-called SAN is made up of software and hardware that combines disparate data storage units into one large data farm that resides on a network. [snip] Becoming the SAN-master is the next goal for Dell and its fast-growing storage empire. Dell first started to sell data storage hardware in May 1998. The company rose fast, to become the No. 7 seller of storage hardware worldwide, behind Compaq Computer Corp., IBM Corp. and others. Since, Dell has become the fastest-growing seller of storage products. It branched out to offer a wealth of hardware and software. Dell executives say they soon plan to take over the No. 3 spot in storage sales. [snip] The software in ConvergeNet is key. It will allow Dell to offer a product that controls data movement, zoning and data protection -- virtually all aspects of storage management. Best of all, the software will work with computers and storage equipment from all but a few of the leading technology companies. That means, Dell technology could be used as the brains behind corporate storage networks, despite what other types of equipment companies use. "Our customers want storage technology from Dell that connects with any open-standards server," said Michael Lambert, senior vice president of Dell's enterprise systems group in an interview Wednesday. ...there's room for Dell to grow. Storage equipment that works with multiple hardware types will increase to a $38 billion market in 2002 from an estimated $20 billion in 2000, International Data Corp. reports. "Our storage market opportunity just got vastly larger," Neeld said.