Feeds

Dell and Compellent are exclusive

They are talking about a business marriage

Internet Security Threat Report 2014

Dell and Compellent are talking about a possible business combination.

The two companies have issued a statement saying that they are engaged in advanced discussions. Dell would acquire all Compellent's outstanding common stock at $27.50/share, meaning about $876m – which will disappoint all the bid-hungry investors gamblers who have pushed Compellent stock to more than $33/share in recent days.

There is no other bidder at present and Dell has entered into an exclusivity agreement with Compellent.

The background is Dell's failure to generate significant revenue from its co-branded EMC CLARiiON block-access arrays. Ever since Dell tried to buy 3PAR earlier in the year, it has effectively served notice on EMC that the CLARiiON resale deal game is up.

The galling thing for Dell is that its acquired iSCSI block access EqualLogic array business is going gangbusters and has recently, we understand, overtaken the CLARiiON-derived revenue.

Although Compellent's Storage Center is not an enterprise-class array like the 3PAR InServ product technology acquired by 3PAR, it is being used by some enterprises and also by cloud providers such as Savvis.

It has many features of enterprise arrays, particularly its automated block-level data movement between tiers of storage including both solid state and hard disk drives. It is also very well-integrated with VMware and has FCoE support.

In its latest iteration it was given more powerful processors and the foundation laid for scaling up its features to better suit enterprise needs. The Storage Center looks to be perfectly positioned to replace the EMC CLARiiON line in Dell's range, with Dell able to broaden Compellent's channel and add a huge amount of sales bandwidth.

In keeping with EqualLogic, Dell will likely run Compellent – if a deal is completed – at arm's length, and so preserve its engineering and development team spirit while it becomes part of the Dell family. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
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
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.