Dell Eyes Enterprise Storage

January 11, 2012: Dell is continuing to reinvent itself as a storage OEM with a series of product announcements that leverage its acquisitions, move it up-market toward the lucrative enterprise space and create new opportunities in the burgeoning Microsoft SharePoint market. Although the company ended its very successful reseller relationship with storage leader EMC only two months ago, Dell grew its storage platform revenues–including its Equallogic and Compellent units–15% year over year in 2011, and they now represent nearly 80% of its storage revenues and more than 90% of its storage profits. The company’s stated objective is to be the third-largest storage vendor behind EMC and IBM in the next couple of years.

With EqualLogic, Dell wrote the playbook for turning newly acquired storage IP into hundreds of millions of dollars of revenue from small and midsize enterprises, noted Network Computing blogger Frank Berry in a recent post. It appears Dell is running the playbook with Compellent and will be equally successful within midsize enterprises, he wrote.

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Author: Steve Wexler

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