& cplSiteName &

Dell to Acquire Force10

Craig Matsumoto
News Analysis
Craig Matsumoto
7/20/2011
50%
50%

Dell Technologies (Nasdaq: DELL) announced Wednesday that it has agreed to acquire Force10 Networks Inc. , a move that would add high-speed networking to Dell's data-center offerings.

Dell's portfolio already includes servers, storage and some networking. Force10, which started life as a high-end, 10Gbit/s Ethernet switch vendor, has been tuning its business for low-latency networking and the cloud lately.

Why this matters
There's a battle brewing among the big vendors in data-center networking. Cisco Systems Inc. (Nasdaq: CSCO) and HP Inc. (NYSE: HPQ) have been deeply engaged; Brocade Communications Systems Inc. (Nasdaq: BRCD) and Juniper Networks Inc. (NYSE: JNPR) have offered their own data-center packages, with partners providing the servers; and now Dell apparently wants a shot.

The popular rumor has been that Dell would acquire Brocade, although the price tag would have been in the billions. Dell's press release doesn't mention an acquisition price -- implying it's a small price compared with Dell's US$32 billion valuation -- but it does describe Force10 as "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."

The deal would mean that Force10, which has been around since 1999, no longer has to answer awkward questions about its oft-delayed IPO.

It's unclear what Dell would do with the Turin piece of Force10.

For more
Force10's long history includes at least two IPO attempts and, of course, the 2009 merger with Turin. Let's stick to the more recent parts of the story:



— Craig Matsumoto, West Coast Editor, Light Reading

(26)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 3   >   >>
stuartb
50%
50%
stuartb,
User Rank: Light Beer
12/5/2012 | 4:58:34 PM
re: Dell to Acquire Force10


That's probably a good pick-up for Dell.  F10 has some very competitive Ethernet switches.  It will be interesting to see what Dell chooses to do, if anything, with the service provider products.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:58:34 PM
re: Dell to Acquire Force10


I'll admit I'm not that familiar with Dell, but I don't think of them as a T1/mobile backhaul kind of company ...


So, would the heritage Turin stuff be jettisoned?  I'm thinking yes, and it would still turn out cheaper (and maybe even easier) than if Dell had bought Brocade.


But I haven't delved into details yet - I basically woke up, saw this press release, typed stuff. Is there something about the Turin half that I'm not seeing through the pre-coffee fog?

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 4:58:33 PM
re: Dell to Acquire Force10


 


Craig,


Not only that but the last time I talked to Force10, the Turin piece of the business generated more revenue than the Force10 bit.  What I would expect to happen is that Dell would dump that business.  Might be an interesting pickup for Cyan since they are about 100 yards from Turin and it would help them bulk up a bit.


I can't imagine the bigger optical players having any interest in Turin at all.  


seven


 

stuartb
50%
50%
stuartb,
User Rank: Light Beer
12/5/2012 | 4:58:33 PM
re: Dell to Acquire Force10


"Is there something about the Turin half that I'm not seeing through the pre-coffee fog?"


No, that piece doesn't seem to be a good fit. Dell doesn't put a lot of emphasis on service providers from what I can see.

scottdTBR
50%
50%
scottdTBR,
User Rank: Light Beer
12/5/2012 | 4:58:32 PM
re: Dell to Acquire Force10


It will be interesting to see how this impacts the OEM relationships with Brocade and Juniper, particularly Juniper. Juniper is really counting on the Dell relationship to advance in the data center.

somedumbPM
50%
50%
somedumbPM,
User Rank: Light Beer
12/5/2012 | 4:58:31 PM
re: Dell to Acquire Force10


I see many colo spaces full of Dell servers with 2 Cisco 6500s in the center for aggregation and connectivity to the multi Tier 1 uplinks.  This seems to be a cookie cutter solution with a very expensive chocolate center for what operations are actually occurring. 


I always thought there would be some sort of reaction to Big C invading the server space from Dell.  -Just a thought.

mfg_boy
50%
50%
mfg_boy,
User Rank: Light Beer
12/5/2012 | 4:58:30 PM
re: Dell to Acquire Force10


Good stuff, good stuff, If I was a F10 employee I would be worried about my job Dell has laid off much of it's Round Rock operations not to mention F10 has office in Dallas. I'm curious to see what they do with head count?

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 4:58:29 PM
re: Dell to Acquire Force10


WSJ says Dell is paying $700M cash. 


http://blogs.wsj.com/venturecapital/2011/07/20/dell-to-pay-700m-for-force10/


That's at least twice what I would have guessed.

CraigPlunkett
50%
50%
CraigPlunkett,
User Rank: Moderator
12/5/2012 | 4:58:28 PM
re: Dell to Acquire Force10


F10 gives Dell a credible data center networking solution in house.  I know a few large enterprises giving F10 a shot at replacing core 6500 solutions.  Port density and price/performance far outstripped Cisco.  Organizational intertia and risk-aversion kept Cisco in.

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 4:58:27 PM
re: Dell to Acquire Force10


 


The Dallas team for F10 is whatever is left of Whiterock (which became part of Turin before Turin became F10).  Heck the stuff in CO is the old CACS stuff (again part of Turin).


seven


 


 

Page 1 / 3   >   >>
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
No Stopping Cable's Ethernet Gains

12|9|16   |     |   (0) comments


Vertical Systems' Erin Dunne explains why US cable operators, which now command a record-high 26% of the Ethernet market, will keep boosting their share.
LRTV Interviews
Fixing IoT Security Is an Ecosystem Challenge

12|9|16   |   05:34   |   (1) comment


Level 3 Communications' Chief Security Officer Dale Drew says service providers, manufacturers and even consumers must combine to halt massive DDoS attacks using IoT devices in botnets. The solution he has in mind includes reputation-based routing by the service provider but also more secure endpoint devices and greater consumer awareness.
LRTV Interviews
Cox Clears $2B in Business Revenue

12|8|16   |     |   (0) comments


Cox's Jeff Breaux discusses how the third-largest US MSO will reach the $2 billion revenue mark this year and plans to hit $3 billion by 2021
LRTV Interviews
Can Cable Climb Upmarket?

12|7|16   |     |   (0) comments


Carol Wilson and Alan Breznick assess cable's prospects for winning more enterprises in a landscape rocked by corporate M&A activity.
Women in Comms Introduction Videos
TalkTalk Exec: Find Your North Star at Work

12|7|16   |   3:38   |   (1) comment


Women need to find their purpose, a professional North Star, and create a personal board for themselves, according to Alex Tempest, director of partners at TalkTalk Business.
LRTV Interviews
Verizon: Beware Unknown Unknowns

12|7|16   |   04:58   |   (0) comments


Chris Novak, director of the Verizon Enterprise Solutions Risk Team, explains that enterprises who don't conduct a thorough audit of their assets often leave some things unprotected because they don't know they exist. Many times these unprotected assets are part of corporate M&A activity but left unshielded they can become a hacker's playground, he tells Light ...
LRTV Interviews
ETSI's CTO Talks NFV, 5G & NGP

12|5|16   |   09:45   |   (0) comments


Adrian Scrase, CTO at standards body ETSI, talks about the various initiatives and specifications developments related to NFV, 5G and NGP (next-generation protocols) that will underpin next-gen networks.
Women in Comms Introduction Videos
Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

11|30|16   |   4:10   |   (2) comments


Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
LRTV Custom TV
We Can Make the World More Sustainable

11|29|16   |     |   (0) comments


GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
Finding a New Way to Engage Customers & Drive Revenue

11|29|16   |     |   (0) comments


Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
LRTV Custom TV
Do You Really Need Gigabit Infrastructure?

11|29|16   |     |   (0) comments


Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
LRTV Custom TV
BTís Openreach Strategy & Its Updates in 2016

11|29|16   |     |   (0) comments


A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
Upcoming Live Events
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cable Nodes Becoming a Choke Point
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 12/5/2016
Consolidated Snaps Up Fairpoint for $1.5B
Iain Morris, News Editor, 12/5/2016
Small Arctic ISP Caches Netflix in New Way
Mari Silbey, Senior Editor, Cable/Video, 12/7/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
A Mobile Safari Click Here
Literally.
Latest Comment
Live Digital Audio

Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.