Dell and Compellent are exclusive

They are talking about a business marriage


Dell and Compellent are talking about a possible business combination.

The two companies have issued a statement saying that they are engaged in advanced discussions. Dell would acquire all Compellent's outstanding common stock at $27.50/share, meaning about $876m – which will disappoint all the bid-hungry investors gamblers who have pushed Compellent stock to more than $33/share in recent days.

There is no other bidder at present and Dell has entered into an exclusivity agreement with Compellent.

The background is Dell's failure to generate significant revenue from its co-branded EMC CLARiiON block-access arrays. Ever since Dell tried to buy 3PAR earlier in the year, it has effectively served notice on EMC that the CLARiiON resale deal game is up.

The galling thing for Dell is that its acquired iSCSI block access EqualLogic array business is going gangbusters and has recently, we understand, overtaken the CLARiiON-derived revenue.

Although Compellent's Storage Center is not an enterprise-class array like the 3PAR InServ product technology acquired by 3PAR, it is being used by some enterprises and also by cloud providers such as Savvis.

It has many features of enterprise arrays, particularly its automated block-level data movement between tiers of storage including both solid state and hard disk drives. It is also very well-integrated with VMware and has FCoE support.

In its latest iteration it was given more powerful processors and the foundation laid for scaling up its features to better suit enterprise needs. The Storage Center looks to be perfectly positioned to replace the EMC CLARiiON line in Dell's range, with Dell able to broaden Compellent's channel and add a huge amount of sales bandwidth.

In keeping with EqualLogic, Dell will likely run Compellent – if a deal is completed – at arm's length, and so preserve its engineering and development team spirit while it becomes part of the Dell family. ®

Similar topics


Other stories you might like

  • Prisons transcribe private phone calls with inmates using speech-to-text AI

    Plus: A drug designed by machine learning algorithms to treat liver disease reaches human clinical trials and more

    In brief Prisons around the US are installing AI speech-to-text models to automatically transcribe conversations with inmates during their phone calls.

    A series of contracts and emails from eight different states revealed how Verus, an AI application developed by LEO Technologies and based on a speech-to-text system offered by Amazon, was used to eavesdrop on prisoners’ phone calls.

    In a sales pitch, LEO’s CEO James Sexton told officials working for a jail in Cook County, Illinois, that one of its customers in Calhoun County, Alabama, uses the software to protect prisons from getting sued, according to an investigation by the Thomson Reuters Foundation.

    Continue reading
  • Battlefield 2042: Please don't be the death knell of the franchise, please don't be the death knell of the franchise

    Another terrible launch, but DICE is already working on improvements

    The RPG Greetings, traveller, and welcome back to The Register Plays Games, our monthly gaming column. Since the last edition on New World, we hit level cap and the "endgame". Around this time, item duping exploits became rife and every attempt Amazon Games made to fix it just broke something else. The post-level 60 "watermark" system for gear drops is also infuriating and tedious, but not something we were able to address in the column. So bear these things in mind if you were ever tempted. On that note, it's time to look at another newly released shit show – Battlefield 2042.

    I wanted to love Battlefield 2042, I really did. After the bum note of the first-person shooter (FPS) franchise's return to Second World War theatres with Battlefield V (2018), I stupidly assumed the next entry from EA-owned Swedish developer DICE would be a return to form. I was wrong.

    The multiplayer military FPS market is dominated by two forces: Activision's Call of Duty (COD) series and EA's Battlefield. Fans of each franchise are loyal to the point of zealotry with little crossover between player bases. Here's where I stand: COD jumped the shark with Modern Warfare 2 in 2009. It's flip-flopped from WW2 to present-day combat and back again, tried sci-fi, and even the Battle Royale trend with the free-to-play Call of Duty: Warzone (2020), which has been thoroughly ruined by hackers and developer inaction.

    Continue reading
  • American diplomats' iPhones reportedly compromised by NSO Group intrusion software

    Reuters claims nine State Department employees outside the US had their devices hacked

    The Apple iPhones of at least nine US State Department officials were compromised by an unidentified entity using NSO Group's Pegasus spyware, according to a report published Friday by Reuters.

    NSO Group in an email to The Register said it has blocked an unnamed customers' access to its system upon receiving an inquiry about the incident but has yet to confirm whether its software was involved.

    "Once the inquiry was received, and before any investigation under our compliance policy, we have decided to immediately terminate relevant customers’ access to the system, due to the severity of the allegations," an NSO spokesperson told The Register in an email. "To this point, we haven’t received any information nor the phone numbers, nor any indication that NSO’s tools were used in this case."

    Continue reading

Biting the hand that feeds IT © 1998–2021