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Dell goes shopping for storage solution
Spending $1.4bn on SAN specialist...

By Dawn Kawamoto

Published: Tuesday 06 November 2007

Dell has announced plans to acquire EqualLogic in a $1.4bn cash deal, as the computer maker seeks to broaden its reach by bolstering its data storage operations.

EqualLogic develops storage area network (SAN) systems based on the iSCSI standard. The iSCSI standard is designed to operate on a company's existing Ethernet network, meaning businesses could lower costs by forgoing the need to install fibre networks.

Michael Dell, CEO of the company, said in a statement: "Our customers will be dealing with the largest increase in data we have seen in our history over the next few years. Leading the iSCSI revolution will help Dell accelerate IT simplification and virtualisation."

Dell, which has slipped a notch in the PC market, has been increasingly turning its attention to storage.

The company plans to integrate EqualLogic's technology into future versions of its Dell PowerVault storage line, as well as retain the EqualLogic brand for current and future products.

In September, Dell introduced a new storage consolidation system designed for small and medium businesses. That SAN array was also based on the iSCSI standard.

Dawn Kawamoto writes for CNET News.com