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Dell Sets Its Storage Stake

Dell's decision to throw down $1.4 billion for EqualLogic today is about much more than just the growth of iSCSI and the untapped spending power SMBs. The deal represents the first tentative shot across the bows of EMC.

Unlike EMC, which has always been synonymous with storage, Dell sits astride a varied portfolio of technologies, encompassing notebooks, printers, and even TVs. But this is starting to change.

Recent months have seen Dell attempt to rebrand itself as a storage player, a move which has received something of a mixed response.

The EqualLogic deal is nonetheless a clear indication that Dell is serious about its storage intentions, spending big bucks on a firm, that like itself, is keen to pry open SMB wallets.

"The die is cast, Dell is now starting to build an independent presence in storage," wrote Goldman Sachs analyst Laura Conigliaro, in a note released earlier today, highlighting the sheer size of today's deal as evidence of Dell's storage convictions.

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