Traditional PC vendors compete for storage services

Comics: Yang Zhaoen

Recently, after a series of consultations, another merger and acquisition case related to storage business was settled during the year. Dell and Compellent jointly issued a statement saying that the transaction value was 960 million US dollars. The two parties have reached an exclusive agreement on the merger and are waiting for Compellent's shareholders. The approval and fulfillment of some other normal transaction completion conditions are expected to be completed in early 2011.

From HP's acquisition of 3PAR for $2.35 billion, EMC's acquisition of Isilon for $2.25 billion, and Dell's acquisition of Compellent today, the traditional PC vendors' competition for storage business further confirms the data storage business in the "cloud computing" technology. Key role.

Traditional PC makers achieve a diversified layout "Dell is in the direction of diversification and is no longer a mere PC company. Moreover, most of Dell's current profits do not come from PCs." A few days ago, Dell CEO Michael Dell's speech, Not only does Dell's willingness to transform urgently, but it also shows the indisputable fact that traditional PC industry profits have been diluted.

"Five years or 10 years ago, people would say that Dell is a PC company. Today, most of our profits are not from PCs, and in the future, this trend will become more apparent." Dell was once the world's largest PC maker. And now it is with macros? Competing for second place. Although the current low-margin PC is still Dell's main business, Michael said that the company is developing more profitable business areas, and storage business is indispensable.

According to Michael, in order to stimulate revenue growth, Dell has fully entered the mobile market. Products include smartphones and tablets. "It is still in its infancy. More products will be introduced next year."

In order to complete the diversified layout, mergers and acquisitions became the weapon in the hands of traditional PC giants such as Dell. Following 2008, Dell acquired EqualLogic, a storage vendor, and announced the acquisition of Perot Systems, a service company, last year. Although previously defeated by Hewlett-Packard in the bid for 3PAR, after the successful acquisition of Compellent for $960 million, Dell's competition with HP and EMC has been strengthened.

Increase in traffic to promote the purchase of storage services In fact, the acquisition of storage business has been a hot word in the IT industry in 2010.

Analysts pointed out that today's Internet traffic has increased significantly, which makes data centers need to store data in a more efficient manner, thus promoting the bid in this area. "The data storage business plays a vital role in cloud computing technology. There is a wave of mergers and acquisitions between traditional PC vendors, acquiring new technologies through mergers and acquisitions to help customers better manage the rapidly growing storage needs." The above analysts Indicated.

In order to establish its own data center, as early as September 2, HP acquired a loss of 3PAR company with a high price of 2.35 billion US dollars, after which it launched an 18-day bid with Dell. Relevant data show that since HP and HP openly bid for 3PAR, the market price of related storage companies has increased by 25%.

On November 15th, EMC purchased Isilon, a storage device manufacturer, for US$2.25 billion, successfully filling a gap in its own product line.

Relevant data show that the current cash flow from companies including Oracle, Hewlett-Packard, Cisco, Dell, and IBM reaches 100 billion U.S. dollars, and all have explicitly expressed plans for acquisitions. Their potential acquisition targets are concentrated in storage and security systems, etc. "This allows them to build data centers for corporate customers," Charles King, principal analyst at Pund-IT, said in an interview.

According to industry experts, “For the storage market, 2010 was a year of recovery, and the explosive growth of digital information forced customers to constantly upgrade their storage equipment to make the system faster and more efficient. The IT giant is also re-examining its position, and mergers and acquisitions in the technology community will continue to be active this year and next year."