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Dell Buys EqualLogic

Dell Inc. announced its intention on Monday to buy EqualLogic Inc. for $1.4 billion in cash. EqualLogic, which makes virtualization-optimized iSCSI storage area network solutions, will be Dell's sixth acquisition in two years. Like several of those acquisitions (Silverback Technologies and ASAP Software), this deal has channel ramifications.

According to a Dell statement, "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."

Meanwhile, if you thought Dell would be satisfied with its recent radical transformation from a mostly direct business model to a mixed model with about 10,000 retail outlets via partnerships with Wal-Mart, Staples, Carphone Warehouse, Bic Camera and Gome...think again. During the EqualLogic call, Michael Dell said, "Six months ago, I think we had zero stores where you could buy Dell product, and now we have about 10,000 stores. Just stay tuned for additional announcements." Dell also said he'll keep offering Windows XP until customers don't want it anymore.

The main story on EqualLogic with some of the other tidbits is here.

Posted by Scott Bekker on November 06, 2007 at 11:57 AM