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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (108129)	3/8/1999 7:27:00 AM
From: Mark Peterson CPA	Respond to of 176387

FYI Dell's San Plan -- Direct Plan May Open Doors For Data-Storage Resellers Mar. 07, 1999 (Computer Reseller News - CMP via COMTEX) -- Irvine, Calif. -- Dell Computer Corp.'s plan to sell its data-storage products via its direct channel may actually present opportunities to data-storage resellers. Dell's new storage area network (SAN) solution, which combines equipment from leading data-storage hardware and software vendors, lets users attach up to four Windows NT-based servers to 900 Gbytes of disk storage. Dell has followed the lead of several recently announced competing SAN alliances by testing its product offerings to ensure interoperability, said Dave Hill, a senior analyst at research firm The Aberdeen Group, Boston. Hill described Dell's solution as a "SAN-in-a-box," but he expects many of Dell's customers to turn to resellers to help with configuration and installation. "When you get into SANs, you are getting into products which are hard to buy with the direct model," Hill said. "And that's where resellers come in." Hill expects VARs will probably see the direct model become increasingly popular. "Compaq [Computer Corp.] and others are considering getting into that space. . . ." he said. "But it's a balancing act. They don't want to disturb their existing channel, but the Dell model is successful." Dell's storage solution includes OpenManage Storage Consolidation Software, which was jointly developed with Microsoft Corp. and allows up to four PowerEdge servers to share a PowerVault 650F storage system. Dell has certified Windows NT backup software from Computer Associates International Inc. and Seagate Software Inc. and expects to certify similar applications from Tivoli Systems Inc., Veritas Software Corp. and Legato Systems Inc. next quarter. The Clariion Advanced Storage Division of Data General Corp. supplies Fibre Channel technology for Dell's 650F system. Crossroads Systems Inc. is providing Fibre Channel bridges; Brocade Communications Systems Inc., the Fibre Channel switches; and QLogic Corp., the host bus adapter. Dell's PowerVault 130T tape library is OEMed from Storage Technology Corp. Pete Gibbs, director of marketing at Clariion, said Dell is quite willing to leverage others' technologies. "One major benefit to SANs and their development over time is there are a lot of players who bring their expertise to the market." Bob Livolsi, senior vice president at Crossroads, said corporations that buy the Dell SAN might pass configuration work to VARs. But it depends on how much the client needs to modify Dell's original configuration. The effect of Dell's direct SAN sales on VARs is mixed, said Bill Gardner, president of San Jose, Calif.-based VAR UltraServ Inc. "We get revenue from service when people order high-end products on the Web," Gardner said. "But its impact on our [hardware] sales is pretty significant. Last June, we gave up on the concept of making money on products." Dell does the industry a favor by opening the market to SANs, said Gardner. "Customers are buying products they might not have bought before. But [customers] don't focus on the fact that just buying the box is not the answer." --- New Avenue For Resellers: - Dell to sell data-storage products via its direct channel. - Follows lead of several competing SAN alliances by testing product offerings to ensure interoperability. - Dell's customers may turn to resellers to help with configuration and installation depending on how much client may need to modify Dell's original configuration. --- SAN Opens Doors For VARs: Impact on resellers: - Direct SAN sales effect on VARs is mixed. - Can help with configuration and installation. -0- By: Joseph F. Kovar Copyright 1999 CMP Media Inc.