Dell today announced it has signed a definitive agreement to
acquire Force10 Networks, Inc., a leader in high-performance
datacenter networking. Force10’s networking capabilities complement
Dell’s datacenter solutions portfolio, enabling it to offer
customers a broader range of enterprise offerings.
Dell has taken significant steps over the past three years to
expand its enterprise portfolio to offer customers a complete range
of datacenter products and solutions. This includes developing an
integrated stack of leading server, storage, networking and
services resources to help customers streamline operations, reduce
IT costs, manage data growth and simplify management. The
acquisition of Force10 and investment in networking is a natural
complement to Dell’s server strength. Dell is the leading x86
server provider in the United States and No. 2 worldwide, according
to first quarter 2011 IDC data.
Force10 Networks Leadership
Force10 is a global technology leader in datacenter, service
provider, and enterprise networking. It is nearly a $200-million
company, based on trailing 12 months revenue, with approximately 80
percent of its business in North America and operating in over 60
countries worldwide. Force10’s Open Cloud Networking is based on
open standards, automation and virtualization and is very
consistent with Dell’s design philosophy. Force10’s technology
allows customers to transform their network infrastructures into an
open, reliable and scalable datacenter and cloud computing
fabric.
Force10 provides global service and support capabilities around
the world through a direct sales force and an extensive network of
channel partners and systems integrators. Much like past
acquisitions of Compellent and EqualLogic, Dell is committed to
maintaining and growing Force10’s channel program. Force10’s
customers include leading Web 2.0 and Fortune 100 companies,
Internet portals, global carriers, leading research laboratories
and government organizations with some of the world’s most
demanding network environments.
Distinguishing characteristics of Force10 include:
- Flexible, open automation and
management
- Massively scalable core datacenter
network at a fraction of the cost
- Automated policy configuration and
mobility
Dell Leadership in the ‘Virtual Era’
In the ‘Virtual Era,’ Dell delivers an open and integrated
approach to datacenter solutions. As part of this approach, Dell’s
networking philosophy drives performance that can radically reduce
costs by significantly streamlining operations. Force10 solutions
provide enterprise performance and resiliency while reducing
overall total cost of ownership (TCO), simplifying network
deployment, and supporting open, standards-based systems and
management solutions. Dell and Force10 have had a successful
partnership for more than six years, providing datacenter customers
with open, capable and affordable networking solutions.
Dell’s intelligent infrastructure management vision enables
orchestration of the underlying server, storage, and network
resources in an open fashion, agnostic of whether they are physical
or virtual, local or remote, Dell or ecosystem-provided, while
ensuring that automated control of those resources is responsive,
economical, secure, and resilient.
Force10 was founded in 1999 and is headquartered in San Jose,
Calif., with research and development operations based in Silicon
Valley. Dell also plans to keep Force10’s existing operations in
Chennai, India as it continues to invest in additional engineering
and sales capability to grow this business.
The transaction was approved by the board of directors of each
company. Additional terms of the transaction were not disclosed.
The transaction remains subject to customary conditions and is
expected to close in late summer.
Quotes
“Today’s datacenter networks are too complex and require too
much manual intervention. What worked in the past is no longer
viable in the virtual era,” said Brad Anderson, senior vice
president, Enterprise Solutions Group, Dell. “Dell’s approach of
offering customers open, capable and affordable solutions aligns
with Force10’s approach to offering customers new levels of
flexibility, performance, scale and automation which is fundamental
to changing the economics of datacenter networking.”
“We are excited to work with Dell. Combining Dell’s global
scale, reach and enterprise portfolio with our innovation in
high-performance networking provides our customers the best
end-to-end solution for today’s and tomorrow’s data centers,” said
Henry Wasik, chief executive officer, Force10 Networks.
An analyst call with Dave Johnson, SVP, Corporate Strategy,
Dell, Brad Anderson, SVP, Enterprise Product Group, Dell, Dario
Zamarian, VP General Manager Networking, Dell, and Henry Wasik, CEO
Force10 Networks, will be webcast live today at 8:45 a.m. CST and
archived at www.dell.com/investor.
About Force10 Networks
Force10 Networks develops high-performance datacenter solutions
powered by the industry’s most innovative line of open,
standards-based, networking hardware and software. The company’s
Open Cloud Networking framework grants Web 2.0/portal operators,
cloud and hosting providers, enterprise and special-purpose
datacenter customers new levels of flexibility, performance, scale
and automation—fundamentally changing the economics of datacenter
networking. Force10 Networks operates globally, providing 24x7
service and support to its customer base in more than 60 countries
worldwide.
About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers
worldwide innovative technology, business solutions and services
they trust and value. For more information, visit www.dell.com.
Special Note:
Statements in this press release that relate to future results
and events are forward-looking statements based on Dell's current
expectations. Actual results and events in future periods may
differ materially from those expressed or implied by these
forward-looking statements because of a number of risks,
uncertainties and other factors. Risks, uncertainties and
assumptions include the possibility that projected benefits may not
materialize as expected; that the transaction may not be timely
completed, if at all; that Dell is unable to successfully implement
the plans, strategies and objectives of management for future
operations, including the execution of integration strategies; and
other risks that are described in Dell’s Securities and Exchange
Commission reports. Dell undertakes no obligation to update these
forward-looking statements.
Dell is a trademark of Dell Inc. Dell disclaims any proprietary
interest in the marks and names of others.
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