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Dell acquires AppAssure, eyes backup software

Summary: The deal represents the first acquisition since Dell formed its software division under former CA CEO John Swainson.

Larry Dignan

By for Between the Lines |

Dell said Friday that it has acquired AppAssure, a backup and recovery software company.

Terms of the deal weren't disclosed.

The deal represents the first acquisition since Dell formed its software division under former CA CEO John Swainson.

Dell is actively working to focus on higher margin businesses such as software and services over PCs.

AppAssure provides application backup software for cloud, virtualized and physical infrastructure. Dell said AppAssure will fit in with the company's overall storage strategy.

According to Dell, AppAssure delivered 194 percent revenue growth in 2011. AppAssure supports physical servers and VMware, Hyper-V and XenServer virtualized ones.

Dell added that it will keep AppAssure's 230 employees and invest in the company.

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Topics: CXO, Data Management, Dell, Hardware, Software, Storage, IT Employment

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6 comments
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  • Really?

    So let me get this straight, Dell decided to be in the software business so they hired the former CEO of CA, historically perhaps the most corrupt tech company with the worst business practices, and least customer satisfaction? CA, who's only real business model was to buy existing tech companies, choke off any development funds, raise prices, slash customer service budgets and drain them for every penny they were worth until there were no more customers. That CA?

    Nicely played Dell.
    txscott
    Reply Vote

    • Really.

      "So let me get this straight, Dell decided to be in the software business so they hired the former CEO of CA, historically perhaps the most corrupt tech company with the worst business practices, and least customer satisfaction?"

      Well, a quick google search shows that Swainson was the guy brought in to FIX that disaster of a company after the scandal broke. So well played indeed.

      Saving a company like that from utter destruction is the ceo-equivalent of walking on water.
      SlithyTove
      Reply Vote

  • Execution

    Dell with all of its acquisitions, only delays how they will integrate their products. Additionally them buying appassure will surely cause some rifts with Commvault and Symantec and those partnerships that ran pretty deep.

    AppAssure wasn't even a top 10 backup vendor, dare I say not even top 20 IMO. How do you take a little known to never heard of company, and get customers to trust it with their data? You cant! They would have been better off raising capital and buying Commvault.
    unredeemed
    Reply Vote

    • But it is dell

      I agree with you but with Dell backing them, they automatically get credibility and trustworthiness from companies that do business with Dell. You look at 3Par and how their sales went through the roof after HP bought them.
      schultzycom
      Reply Vote

  • Commvault

    Dell doesnt need to save up pennies to buy Commvault. Though Commvault is a goood software company, they are trading grossly overweight at a PE of 95 and they are already carrying whatever goodwill in the SP.

    At 2Bn market cap they would want too much money for a company that made a paltry 41m last year in profit and any company that buys them would take way too long to realise a profit.

    Dell buys companies like App assure, compellent, Equalogics etc that are up and coming and then just strap them into the DEll sales force. Having 50000 sales reps suddenly targeted with x times commision to sell a new product has a remarkable impact on new product growth. Commvault and others beware. Should have sold when you had the chance
    cmeow
    Reply Vote

  • American Greed

    I am a customer and have been for over 2 years. The support has gotten progressive and steadily worse, the new release is over a year late, and I am hearing that the CEO showed up in his new Ferarri today. The sales guys tell support that the only focus internally is revenue dollars.

    I am looking at Commvault.
    serverstud
    Reply Vote
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