Dell gets more channel religion; Buys EqualLogic for $1.4B

Dell gets more channel religion; Buys EqualLogic for $1.4B

Summary: Dell said Monday it will buy storage vendor EqualLogic in a deal worth $1.4 billion in cash.

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TOPICS: Hardware, Dell, Storage
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Dell said Monday it will buy storage vendor EqualLogic in a deal worth $1.4 billion in cash.

EqualLogic makes iSCSI storage area network gear that's optimized for virtualization. Dell's motive is to use EqualLogic to bolster its storage lineup and channel ties.

Dell added that the EqualLogic purchase will hurt its earnings per share outlook by about 2 cents a share to 5 cents a share in fiscal 2009 and 2010.

While the storage lineup is worthwhile, Dell seems to see that channel as a big benefit to the deal.

In a statement, Dell said:

Dell plans to grow EqualLogic’s successful channel-partner programs with current and future EqualLogic-branded products, and also plans to incorporate EqualLogic technology into future generations of its Dell PowerVault storage line available through the channel and direct from Dell.

Coupled with Dell's partnerships on the retail side of the house the PC vendor seems to be getting channel religion.

Topics: Hardware, Dell, Storage

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4 comments
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  • Religion for the day

    Dell, like all other technology companies, only holds the channel in regard when it's convenient. All too often, achieving corporate goals by doing deals direct quickly relegates the channel to the rightful position: only when it suits us category.
    smithwillscott
  • RE: Dell gets more channel religion; Buys EqualLogic for $1.4B

    We have been an Equallogic customer for years. I hope that Dell leaves this division alone and does not try to mess with the support organization. They are top notch unlike Dell support. There product and services are far superior to Dell and should not be touched.
    dwilkins@...
  • RE: Dell gets more channel religion; Buys EqualLogic for $1.4B

    Holy crap!
    11bravo
  • RE: Dell gets more channel religion; Buys EqualLogic for $1.4B

    It's time for Dell to wake up and smell the roses. Dell also has a huge "unoffical" reseller channel base - it's real, it purchases products and services from Dell and needs proper recognition from Dell.

    Dell's championed Sales model can still stay intact.
    How? Why?
    Savvy customers - be they SME's, Education or End Users know they don't have the skills required to select, setup and configure a system. This is where
    the reseller channel come in and creates a solution for the customer- result is happy customer, happy Dell (another sales) and happy channel (makes margin).

    Tom in Ireland
    tomreaney@...