Dell signs deal to buy Ocarina Networks

Dell is a company established in 1984 with the fundamental intention to produce and sell personal computers. It has been serving its consumers worldwide for the past  twenty six years. Dell has played a significant role in transforming, computing and facilitating more persistent access to technology all over the world. Half of its revenues are engendered outside US.

Escalating Business

After establishing itself as a leasing brand in the IT industry; Dell has significantly increased its  production and sale of personal computers. Dell now also wants its name in other computer related items including data storage devices, servers, network switches, computer peripherals, software and televisions. For this purpose Dell is acquiring other small firms like Exanet, Perot Systems, Allin’s Microsoft IT consulting business and some other.

Ocarina Networks

Dell is also planning to acquire Ocarina Networks a company providing Storage infrastructure worldwide. Ocarina is acting like a leader in storage optimization solution due to its file-aware optimization technology.

Behind the scene

Dell is in competition with Hewlett Packard Co and IBM. As both of its main competitors are providing storage infrastructures and Dell was falling behind its competitors. So to vie Dell has decided this deal. There is also another reason as Dell has acquired Exanet and Perot Systems before, to compliment Exanet. The company is more interested in acquiring Ocarina due to its data deduplication plus compression technology and has planned to increase its engineering and sales potential after the deal is completed.

Dell’s announcement

To overcome the competition Dell announced on Nineteenth July 2010 that it is going to acquire Ocarina Networks. David Graves, a spokesperson for Dell’s storage and networking business said “Growth of storage is a tremendous challenge to our customers” and “We are trying to help them with it.”

Competitor’s View

Dell is having no past strategic association with Ocarina but Ocarina was providing its services to EMC which is a key storage associate of Dell as well as Dell’s competitors. With this acquisition Dell will be having more competitors including NetApp a top five ranked vendor. Dell has got control over one of the few independent developers of data dedupe technology for primary storage.

There is another confusion or say threat. Dell was taking storage facility from CommVault and Symantec. After this acquisition it seems that there will be an internal conflict and competition. It may be good and can give positive results.

At last I will like to say that it seems good for Dell to have such a leading Storage infrastructure acquired in the shape of Ocarina. It has made its position more strong and will be providing its customer with more improved and great variety of services. This acquisition has also enhanced Dell’s competitive position in the industry.

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