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Dell to complete acquisition of Equallogic

by Scott Bicheno on 28 January 2008, 08:00

Quick Link: HEXUS.net/qalfn

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Indirect free kick

While deals with the likes of Tesco and DSGi have been grabbing the headlines as indicators of Dell’s nascent channel strategy, the acquisition of EqualLogic, first announced last November and which has 15 per cent of the enterprise storage market and a channel-only strategy, is considered by many to be a critical piece of the channel puzzle.

With most of the tech industry action at the start of the year being in the business sector as IBM, Sun and Oracle all make moves and Lenovo announces it is to licence IBM’s xSeries server technology so that it can make its own Intel-based servers, Dell needs to make its presence felt in the server channel in a hurry. It announced its own SAN (storage area network) product launch aimed at SMBs at the start of the year and the incorporation of EqualLogic will give it strength across the board in the SAN space.

While Dell hopes this deal will strengthen its position in the business market it will also create its fair share of problems. EqualLogic currently sells its storage solutions to companies that use HP, IBM and Sun servers as well Dell ones, so something’s got to be worked out there. Additionally, the deal will bring Dell into direct competition with EMC – the enterprise storage market leader – with which it has, until now, had a strong business relationship. Lastly there is the question of whether you can simply buy a channel presence. Time will tell.



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