Light Reading
Never mind that IPO; Force10 lands a deal with the company that was supposed to acquire Brocade

Dell to Acquire Force10

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

Dell Inc. (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 Hewlett-Packard Co. (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
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   >   >>
Flash Poll
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (3) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
LRTV Huawei Video Resource Center
Orange Tunisia Discusses Multi-Band Antenna With EasyRET Solution

7|4|14   |   2:45   |   (0) comments


As new site acquisition becomes more difficult, Orange Tunisia has requested multi-band antenna to support UMTS and LTE innovation. Some things considered include reducing the cost of antenna maintenance and having high reliability antenna and EasyRET solution.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Allot's latest MobileTrends Charging Report shows that value-based pricing plans are up from 35% in 2011 to 85% in 2014.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
The Municipal Menace?
Jason Meyers, Senior Editor, Utility Communications/IoT, 7/22/2014
Cisco Puts a Fog Over IoT
Sarah Reedy, Senior Editor, 7/23/2014
GM: 10 Car Models on Road With AT&T's LTE
Dan Jones, Mobile Editor, 7/18/2014
Apple Earnings: Strong iPhone Sales, iPad Sales Slump, $7.8B Profit
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/22/2014
Like Us on Facebook
Twitter Feed