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For EMC, Dell Hell In EqualLogic

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[qi:023] Dell (DELL), the Round Rock, Texas-based computer maker, is not known for splurging billions of dollars on acquisitions. So its decision to buy Nashua, N.H.-based storage networking equipment maker EqualLogic for a whopping $1.4 billion in cash has certainly drawn attention.

“Storage is the fastest part of Dell’s business,” CEO Michael Dell said in an interview with The New York Times. “There’s an explosion in the amount of data being consumed.”

Storage brings in about $2.4 billion a year for Dell, much of it from the resale of devices made by EMC Corp. (EMC). In other words, despite making a lot of sales, Dell doesn’t get a bigger piece of the pie. No wonder Michael Dell is looking to cut EMC out of the picture and take control of the company’s storage destiny.

Some may not remember, but at VMWorld back in September Michael Dell himself introduced a new, non-EMC iSCSI SAN product, the MD3000i. He said that the growth was in the small- and medium-sized businesses, and that traditional storage guys were ignoring the market. His declaration of independence should concern EMC, because Dell has been EMC’s play in the fast-growing SMB market.

“If the MD3000i turns out to be a fast-moving product, EMC will likely see a drop in revenue from Dell, which could force a restructuring of their relationship,” writes Ashok Kumar, analyst with CRT Capital Holdings, an investment bank based in Stamford, Conn. “EMC has historically been a demanding and jealous business partner.”

14 Responses to “For EMC, Dell Hell In EqualLogic”

  1. brent

    You people are morons, this is a corporate play and has nothing to do with your fricking home PC. Do you dipsticks realize the consumer junk is like 15% of Dell revenue. Get a grip – the play is B2B. Who cares about your kids video game machine…

  2. Tim Harman

    I bought a Dell today and the hard drive failed on the first boot up. Called there tech support and got a person that only gave canned responces. After 30 min. on the phone the guy tell me he could not help me and gave me another number to call . I called and they said it was maybe the hard drive. I needed to buy a hard drive and have it there when the tech got to my home. I told them I just bought the Dell to hours ago many times. After repeating myself 5 times they said I need to return it to Best Buy were I bought it and go right to the geek squad desk for repair. Hell I bought a new machine and you would think it would at least boot one time. After that I got on there chat and was told more or less the same thing. I told the chat guy It was there problem and not Best Buy’s . I was told that Best Buys told me about a contract between the two about tech support . My only comment was and I repeated myself was I bought a Dell new and they need to replace it or come to my house and fix it free since I would have to drive over a hundred miles for repair……Tim from Ohio In Dell Hell