Dell to acquire SAN vendor EqualLogic
Dell has entered into an agreement to acquire SAN (storage area network) vendor
EqualLogic for $1.4 billion, the companies announced Monday.
EqualLogic sells iSCSI (Internet Small Computer System Interface) SAN products
optimized for virtualization and the acquisition will strengthen Dell's efforts
to simplify and virtualize IT for its customers, Dell said in a news release.
Internet SCSI allows for SCSI commands and storage traffic to occur over existing
IP (Internet Protocol) networks, which can lead to lower costs, easier maintenance
and simpler management, according to proponents. Many iSCSI products are targeted
toward small and medium-sized businesses.
Customers will have to deal with the "largest increase in data we have
seen in our history" during the next several years, Michael Dell, the company's
chairman and CEO, said in a statement. "Leading the iSCSI revolution will
help Dell accelerate IT simplification and virtualization," he added.
Dell expects the acquisition to close late in the fourth quarter of this year
or early in the first quarter of next year. The acquisition has been approved
by the board of directors of each company and is subject to regulatory approvals.
Dell plans to add to EqualLogic's channel-partner programs with more EqualLogic-branded
products, and it also plans to incorporate EqualLogic technology into future
generations of its Dell PowerVault storage line, the company said.
EqualLogic, based in Nashua, New Hampshire, has more than 3,200 customers in
30 countries. It shipped its first product in June 2003.
IDG News Service
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