Acquisitions

Personal computer maker Dell is starting to expand into the data storage area, that until last year it represented 4 percent of Dell's revenue. Therefore on Monday the company paid 1.4 million dollar cash in order to acquire EqualLogic Inc., which makes data-storage network systems. The more storage it produces for itself, the less it buys from data-storage gear maker EMC Corp. that will still be the main support for traditional storage customers, while EqualLogic will be used for midsize businesses. EqualLogic filed for an IPO in August, but there was not set up any for the stock sale; the funding was obtained from Charles River Ventures and other venture firms backed up with $50 millions. According to Christopher Baldwin, a Charles River partner and EqualLogic board member, Dell had expressed his interest for several years before the negotiations become serious and that is why the deal was the largest all-cash acquisition of a venture-backed startup. However, chief executive Michael Dell said that acquiring EqualLogic is just one of the moves on the company's expansion- in two years six acquisitions were made. Moreover, virtualization is expected to exceed in demands to $15 billion worldwide by 2011 in its role of giving more storage with less hardware. Despite that the rumors say it is not for the benefit of hardware producers like Dell, EqualLogic CEO Donald Bulens reveals that virtualization might actually increase demand for storage products. Dell's CEO also touched in his press release the subject of a bigger retail strategy- from direct sales to retail outlets in Japan, China and Britain. Also XP will remain the operating system until customers will demand the Vista version. Continuing to expanding the company's shares might have lost 8 cents on Monday, but on the long run, it will definitely be one of the winners, always accommodating to trends. Worth all the money…any money invested in it, are safe money. Enjoy!

related story: http://news.yahoo.com/s/ap/20071105/ap_on_hi_te/dell_equallogic;_ylt=AmnN5gQq2Q.swOTdv9A8Csis0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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