Dell buys into storage and virtualisation
Dell is to acquire EqualLogic for $1.4bn in a move to claim a larger share of the data storage market in Dell’s largest acquisition to date (its fourth this year) as the company pursues acquisition as well as organic growth.
November 6, 2007
Michael S. Dell, who returned as CEO in January, said the acquisition would help Dell simplify corporate storage for companies as they grappled with more data than ever before.Data storage today accountsfor about $2.4bn of Dell’s revenue of about $57bn, but is growing rapidly.
The privately held EqualLogic, Nashua, is the leading provider of the Internet-based storage technology known as iSCSI aiming to make it easier for businesses to store data by using existing networks rather than installing expensive new dedicated fibre optics network. Its technology virtualisation, allows a single computer to function like multiple installations.
iSCSI technology represents the fastest-growing segment of the overall storage industry. EqualLogic reported revenue of $68.1m in 2006 and a net loss of $500,000. During the first six months of 2007, it reported revenue of $53.2m and a net loss of $1.5m.