Dell announced earnings yesterday that reflected the rough economy. One of their most obvious bright spots was EqualLogic, which according to Dell CFO Brian Gladden saw a revenue increase of 71%, although storage revenue overall was down 17%. Although not mentioned specifically, I suspect this means their Clariion business with EMC was down too.
FWIW, I don't think this is a case where EqualLogic systems are displacing Clariion sales - although some of that is probably going on - but is instead a case where EqualLogic storage is successful in SMB accounts just as it always has been.
3PAR and EqualLogic arrays are similar in the level of automation they provide, which saves storage administrators lots of time and effort and is why both are popular now. But other than that, the products are very different and developed for distinctly different types of customers, with some overlap in the medium sized business segment.
Mark,
Reading recent EMC and Dell results, the Clariion business is indeed challenging for Dell.
Overall business is down 17% off a large number. EQL business is up off a small number. The overall business also includes a sizeable PowerVault business, some of which directly competes with EQL in the SMB space at a lower price point.
The reasons that EQL is up is due to several factors:
- modest recovery in EQL channel business
- consolidation and rationalisation of storage specialists in the company to more focused
- greater acceptance by Dell sales folk that EQL actually 'works' and is a capable platform for their customers.
- Dell sales force being paid a premium to push Equallogic over EMC.
Posted by: Geoff Mitchell | May 29, 2009 at 05:35 AM