Dell to Acquire EqualLogic

Our customers will be dealing with an enormous increase in data over the next few years.  To put this in perspective, the world generated about 161 exabytes of data last year and we expect this to go up six-fold in the next  four years.

This increases the importance of providing our customers with the best range of storage solutions, which is why we announced today that Dell has entered into an agreement to acquire EqualLogic, a leading provider of high-performance iSCSI storage area network (SAN) solutions uniquely optimized for virtualization.  The acquisition will strengthen Dell’s product and channel leadership in simplifying and virtualizing IT for customers globally.

Michael Dell said in the release this morning that “”Leading the iSCSI revolution will help Dell accelerate IT simplification and virtualization, and will be a foundational element for us to further drive the Dell value proposition into more areas of the enterprise storage market.”

We can’t answer all of your questions on the announcement, since the transaction is subject to regulatory approvals and customary closing conditions, which we expect to be complete by the end of our fiscal fourth quarter, 2008 or early in the first quarter, 2009.  However, we thought we would provide a few key facts.

    1. EqualLogic is based in Nashua, New Hampshire.  The company was founded in 2001 and it has 384 employees, who serve customers in over 30 countries.  They have a great management team whom we are looking forward to working with.
    2. EqualLogic is a leading provider of iSCSI storage solutions sold exclusively by the channel through 480+ partners
    3. Dell is committed to growing EqualLogic’s successful channel-partner programs with current and future EqualLogic-branded products.  Dell also will incorporate EqualLogic technology into future generations of our PowerVault storage line products available through the channel and direct from Dell.
    4. We believe EqualLogic is a strong complement to our current Dell PowerVault and Dell/EMC storage product lines.
    5. The Dell and EMC global partnership remains strong as we continue to rapidly grow our Fibre Channel SAN storage business together.  Last year, Dell and EMC extended their global alliance to 2011 and expanded the products offered.
    6. EqualLogic’s  iSCSI SAN technology represents the fastest-growing segment of the storage business.  Dell was named the fastest growing storage vendor by IDC in 2Q07 and Dell’s storage business is the fastest-growing category of our overall company.  EqualLogic’s iSCSI SAN technology will give Dell leadership technology in the fastest-growing storage markets (iSCSI storage and SMB storage).
    7. We know that all of our customers will be dealing with an enormous increase in data over the next few years.  Our decision was driven by our desire to provide our customers with the best storage options for the short and long-term and to provide the best solutions for IT simplification and server virtualization.

Once the acquisition is complete we will share more information with you.  In the meantime, we look forward to your thoughts and comments.

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