Light Reading

Dell to Acquire Force10

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

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: Light Beer
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
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (7) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
LRTV Custom TV
VMware CEO Pat Gelsinger at Mobile World Congress

4|1|14   |   3:41   |   (0) comments


VMware CEO Pat Gelsinger speaks to Heavy Reading about the value of virtualization spanning from the data center to service provider networks to mobile devices.
LRTV Huawei Video Resource Center
Analysts' Impressions of Huawei SoftCOM at ONS 2014

4|1|14   |   1:11   |   (0) comments


After visiting the Huawei booth at ONS, Lee Doyle of Doyle Research gives his appraisal of Huawei's SoftCOM solution.
Hot Topics
BlackBerry Invests in Healthcare IT Startup
Sarah Reedy, Senior Editor, 4/15/2014
Volvo: AT&T HSPA+ Can Drive My Car
Sarah Reedy, Senior Editor, 4/16/2014
T-Mobile Petitions Operators to Kill Overages
Sarah Reedy, Senior Editor, 4/14/2014
Cisco & VMware Are Apple & Google of SDN
Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/14/2014
Mobile Apps Susceptible to Heartbleed, Too
Sarah Reedy, Senior Editor, 4/14/2014
Like Us on Facebook
Twitter Feed