Feeds

Dell and Compellent are exclusive

They are talking about a business marriage

Maximizing your infrastructure through virtualization

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. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.