Dell buys EqualLogic

The spending spree has begun
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Dell has acquired data-storage network system outfit EqualLogic for $1.4 billion. Dell has previously made just four per cent of its revenue from data storage, however, this sector of the business is experiencing faster growth than any other department.

The purchase comes as EqualLogic were planning to make an initial public offering (IPO).

Michael Dell indicated this week, while promoting the "Simplify IT initiative" in Japan, that his company cannot deny rumours that a spree of purchases may be on the cards. "I would not be surprised if the nature and pace of acquisitions increases somewhat in the future," Dell said.

"Dell is a $50 billion-a-year company and while that's not as large as IBM or HP [Hewlett-Packard], they are a mature vendor and one way to grow is developing new options for existing customers and looking into areas to grow in order to gain new customers," said Charles King, an analyst with Pund-IT Research.



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