Dell's Gale Buy Points To Cloud Focus
Dell issued a dismal earnings report last week but hopes its Gale Technologies acquisition points to a more lucrative future.
Dell announced Friday that it is buying Gale Technologies, a Santa Clara, Calif.-based maker of IT management, automation and orchestration tools. Financial terms were not disclosed. The acquisition announcement came less than 24 hours after the Texas IT giant announced massive revenue losses for the most recent fiscal quarter. The Gale deal is a possible silver lining amidst the glum news, as the purchase should bring improvements to Active System, the company's converged infrastructure platform.
Dell's stock slid in after-hours trading Thursday after it revealed that third-quarter revenue fell 47%. The company was quick to point out, however, that its server and networking business grew 11% -- and it's fair to see the qualification as more than PR spin. Read full story on InformationWeek
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