Dell's buying frenzy might not be over yet

By Jon Gold, Network World |  IT Management, Dell

While Dell's recent string of new acquisitions probably won't continue at the same breakneck pace that has been seen over the past several weeks, experts agree that the company is in the midst of a major strategic shift.

RELATED: Dell's acquisition a Wyse one, analysts say

Although Dell has undoubtedly picked up the pace of late, Gartner research director Adrian O'Connell says the company's acquisitive pattern dates back several years. The current trend, he argues, started with Dell's purchase of SAN vendor Equallogic in 2007, and is focused on pushing the company toward a greater focus on enterprise IT.

"We tend to talk about 'old Dell' and 'new Dell' in terms of the different faces of the company," he says.

Dell's acquisitions since the Equallogic deal have focused primarily on virtualization technology and systems integration and management. These include Perot Systems, KACE Networks, and Boomi, in addition to the latest string of buys - AppAssure, SonicWall, Wyse, Clerity and Made - which have all been announced since Feb. 24.

While it's impossible to say for sure, Dell is unlikely to be finished with its buying spree, though the current pace of acquisitions will almost certainly drop.

"[Dell] looks for small to mid-sized companies that have some sort of technology value-add," O'Connell says. Larger firms, he adds, might be more difficult to integrate completely, so Dell will likely restrict its buying practices to more easily digestible fare.

Nevertheless, according to EMA managing research director Steve Brasen, the Texas-based computer company has more ground to cover in its bid to outdo competitors HP and IBM.

"There are still a number of holes they need to fill in infrastructure management," he says, citing data center infrastructure as a major example.

"If you look at IBM and HP in particular ... they all have infrastructure management solutions in place today, and Dell really hasn't been competing in that particular area," Brasen says. Given the tendency of large customers in particular to look for one-stop shopping options when it comes to IT, this shortfall is likely costing Dell some business.

 

Hidden advantages

But even if IBM and HP have a leg up currently, Dell's acquisitions and pre-existing position in the market could provide a surprising boost to its prospects.


Originally published on Network World |  Click here to read the original story.
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