Dell Buys EqualLogic = EMC Loses Market Dominance
News broke this morning that Dell is purchasing EqualLogic in a $1.4B deal expected to close next year. This is great news for EqualLogic and, with the reputation and expertise of Dell, will give the company a way to expand sales and channel partnerships many times over, I am sure. Of course the deal is great for Dell because they will now have an impressive iSCSI suite of hardware and software of their own, instead of reselling EMC’s technology. While some (including Dell) will argue that there is a clear delineation between the markets served by EqualLogic and EMC, I am not so sure that EMC won’t get the raw end of this deal in the long run.
Though EqualLogic is a relative newcomer to the storage wars, they bring a handful of powerfully differentiating factors to the table when compared to EMC. In contrast to EMC, EqualLogic is an agile company able to quickly respond to customer desires; EMC is a monstrous entity less able and willing to change. Additionally, EqualLogic has historically operated with an open-hand philosophy, allowing access to the entire suite of management software and unlimited functionality, no matter what level of the product line you buy in to; EMC on the other hand nickels and dimes consumers, insuring that their most coveted and impressive features are never seen by nearly all of the SMB market because they can not afford to buy them. Lastly, EqualLogic has engineered and developed their products themselves while EMC has not; typical of EMC, the company simply purchased their technology once it was developed by someone else. Pair Dell’s healthy and active ability to listen to consumers with EqualLogic’s impressive and robust offerings and you have a recipe for tremendous success.
I am confident in predicting the demise of the EMC / Dell partnership on the order of a few short years. Having had my hands on the products of both EMC and EqualLogic, I can say without a doubt that EqualLogic has the upper hand in all respects. Dell’s acquisition, if managed properly, will propel EqualLogic into the spotlight, allowing enterprise to realize the viability of this impressive line and rest easy knowing that Dell’s superb support backs the offering. Making the decision to give EqualLogic a try will be an even easier call and once adopters realize the cost savings and increased functionality, EMC will be the hot potato to drop.
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