Why Dell's Compellent Acquisition is a Good Move

By CIOinsight  |  Posted 12-15-2010 Print
With its acquisition of Compellent, Dell is getting a quality storage company for way less than half of what it would have paid for 3PAR.

Dell, by announcing Dec. 13 that it is acquiring Compellent Technologies for $960 million, may have pure-lucked its way into a sweet deal.

Back on Sept. 2, when the Round Rock, Texas-based PC, server and storage maker surrendered to Hewlett-Packard after a 10-day bidding war, enabling HP to buy storage provider 3PAR for $2.3 billion, things looked pretty dreary indeed.

After all, it's corporately embarrassing to be outbid by a major competitor for a property that a company really wants. Egos were indeed involved, and Michael Dell's was undoubtedly bruised.

However, as well-thought-of and as solid as 3PAR's scale-out storage products are, Compellent's are probably better for a lot of companies because they're of a later generation that has long since solved common storage problems [read that bottlenecks] of the past.

For more, read the eWeek article: How Dell Lucked into a Smart Acquisition in Compellent.


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