Dell is currently working to build EqualLogic's technology into its 1000, 3000, and 3000i PowerVault disk arrays, although the vendor's attempts to re-brand itself as a storage player have received a mixed response in some quarters.
There has also been speculation that Dell's recent storage moves could affect its relationship with EMC, from whom it resells its storage kit. This partnership has become a major cash cow over recent years and Dell now accounts for between 15 percent and 16 percent of EMC's overall revenues, according to Goldman Sachs.
CEO Michael Dell used last night's conference call to dispel suggestions that the EMC partnership is on rocky ground. "Our Dell/EMC storage will continue to grow due to a focus on lowering total costs," he said, adding that the EqualLogic acquisition will "simplify storage" for SMBs.
At least one analyst feels that Dell's third quarter results suggest that the vendor is heading in the right direction. "Dell is beginning to drive incremental revenue from newer initiatives [international, SMB, consumer, new products, and acquisitions]," wrote Goldman Sachs analyst Laura Conigliaro, adding that the vendor saw "unusually aggressive" pricing in the Japanese PC market.
Another vendor enjoying storage growth is Brocade, which posted its own results last night. The SAN specialist's Q4 revenues were $340 million, up 63 percent on the same period last year, although slightly below analysts' estimates of $340.8 million. Brocade's annual revenues were $1.2 billion, up from $751 million in 2006.
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