After acquiring Compellent, Dell has announced plans of using the company’s data tiering technology in its line of storage arrays. According to the officials of Dell, the company has purchased each share of Compellent for $27.75, which makes it a deal worth $940 million. With the total equity price of $940 million the aggregate price for the purchase is roughly $800 million. The most important and significant intellectual property that Compellent had was data tiering technology. After having acquired this technology now Dell wants to offer to its customers the option of shifting the less frequently used data to the higher-capacity but slow in performance SATA hard drives.

Using this tiering technology Dell would be effectively able to reduce the initial costs for its storage system. This would be made possible because the data tiering technology decreases the cost of ownership. One thing that is common between Compellent and Dell is their ambition to assist cloud customers and also regulate their storage investments.

Now having acquired Compellent, Dell plans to combine the best of both the companies and thus win the confidence of its consumers. Dell seeks to help strengthen the customer relationship and also boost customer loyalty towards Dell. For this Dell officials have to make sure that they prove themselves to be the best. HP acquired 3Par, a company that offers services similar to those given by Compellent. An advantage with HP is that regarding 3Par’s SANs. The SANs have an ASIC, that is, Application-Specific Integrated Circuit that helps to offload the advanced functions. Thus, it will give superior performance to its systems and help to target higher-end customers. So you as a consumer have a lot to decide. Get yourself ready to make a tough choice. Brace up to witness a close contest between HP and Dell.