Feeds

Dell strives to fill storage holes

Will plug gaps with storage supplier buy

Top 5 reasons to deploy VMware with Tegile

Dell will likely make storage supplier acquisitions to fill holes in its offerings, the company has told analysts.

The company held a financial analysts event at its Round Rock, Texas headquarters yesterday. It said it is enduring a spending squeeze by its corporate, public sector and SME customers and sees a transition to virtualised enterprise data centres with lower managegement costs.

Dell doesn't see a need to offer its customers totally integrated stacks - including applications, middleware, hardware and services - and thinks a fully-featured portfolio will drive its growth faster.

It does not think it can get that portfolio by internal or organic growth and is looking to inorganic growth, corporate-speak for acqusitions. A presentation slide put that message clearly: "Inorganic growth is an important enabler."

Acquisitions will include storage companies as the rapid increase in digital information is expanding the IT ecosystem.

Also Dell has been enthused by the success of its $1.4bn EqualLogic buy of November 2007, with revenue from EqualLogic products up 400 per cent since the purchase and a current $500m run rate.

It wants to drive workforce efficiency in large enterprise data centres and help SMEs with their storage growth. Acquisitions will be of profitable companies with products and technologies that can deliver more profits to Dell. It wants products it can sell to its customers on day one, and is not looking to buy in technology to build a more unified product stack.

The company wants to fill holes in its offerings to large enterprises, the public sector and SMEs, and will try to buy independent suppliers of products that its customers are currently buying - just not from Dell.

A Business Week report has said Dell is making part of its business unit boss's pay dependent on their help with Dell growth through acquisitions. Recently Dell hired David Johnson, a 27-year IBM veteran who worked in Big Blue's mergers and acquisitions department. There is a non-compete dispute, and legal action between IBM and Dell about Johnston's work with IBM saying it could harm its own interests.

There were no suggestions made to the analysts as to where Dell might look in the spectrum of storage products. Any storage company with a successful product line in an area where Dell is absent but its customers are not, and with good growth prospects, might well ask what it should do if Dell's acquisition team comes knocking on its door. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.