The Cloud's The Thing For Dell, With Compellant BuyDecember 2010 | M&A Analysis
Computing and IT services company Dell has agreed to buy Compellant Technologies, a vendor of modular storage area network systems, for US$820mn in cash. The deal comes just months after Dell lost out to Hewlett Packard (HP) in the bidding race for a similar company and BMI takes this announcement as a clear sign that IT companies recognise the inherent value of the cloud computing market to key enterprise customers. With large businesses, such as multinationals, also keen to reduce costs by placing greater reliance on the cloud, BMI does not expect this to be the last such strategic buy announced by Dell or its rivals.
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