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Dell acquires Force10 networks, forays into networking

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DQW Bureau
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style="font-size: 13pt;" size="3">With
the recent acquisition of Force10 Networks, href="https://www.dqweek.com/dell-issues-advisory-against-parallel-import-to-partners">Dell
has strengthened its
presence in the networking space. Announcing the acquisition of the
US-based networking company to the press persons, Dell said the R&D
team of Force10 networks' Chennai fraction will be ramped up in
next 12-18 months to strengthen the networking business. Dell also
announced that the human resource will also be increased.

style="font-size: 13pt;" size="3">Speaking
on the event, Suresh Vaswani, executive VP, Dell Services, and
chairman, Dell India said, “Acquisition is a key strategy and in
recent months, we have inked 10 acquisitions. Dell has a guiding
philosophy of providing open, capable and affordable solutions for
customers.” Dell's only manufacturing facility in India is in
Sriperumbudur near Chennai. Further to the acquisition of Perot
Systems, Chennai is one of the key centers for Dell Services. “We
now look forward to Force10's Chennai R&D team, bolstering our
foray into networking. We plan to significantly increase engineering
headcount at Force10 Chennai, over the next 1-year,” he further
added. Speaking to The DQ Week on the special schemes for
partners on the sidelines of the event, Suresh Vaswani said, “We
always value our partners and we have schemes which benefit the
channel community. There are more schemes to come in the forthcoming
days for our channel partners.”

style="font-size: 13pt;" size="3">Networking
is the logical third component to our industry-leading server and
storage portfolios. When we searched for a company which meets our
requirements for networking, we found Force 10. With a revenue of
$200 mn, having human resource of around 750 employees, and 1,400
customers across the globe, it is the best player to acquire and
strengthen our networking segment,” said Dario Zamarian, VP and GM,
Dell Networking.

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style="font-size: 13pt;" size="3">The
Force10 acquisition is Dell's latest investment to broaden its
networking portfolio to deliver its Virtual Network Services
Infrastructure. Dell expects the transaction to be accretive to
earnings in the second half of next year. Dell expects to hire
several hundred new team members in engineering, sales and marketing,
and services jobs at the Dell Silicon Valley as well as Chennai R&D
centers.

style="font-size: 13pt;" size="3">Dell
has taken significant steps over the past 3 years to expand its
enterprise presence as a complete solutions provider. Dell recognizes
that the network infrastructure to deliver applications or
information is critical, regardless of location or end point device.
Dell sees the data center as the focal point whose network must be
transformed into a streamlined, efficient, policy-driven network
responsive to changing applications and end-user demands. The
acquisition was finalized on August 25, 2011.


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