Dell to splash out on storage firm 3PAR

Could Dell be gearing itself up to compete with EMC in the storage space

Dell is set to acquire storage firm 3PAR in a move intended to beef up its enterprise portfolio for virtualisation in datacentres. However, it also raises questions about the firm's long-standing partnership with EMC for enterprise storage.

The deal, which is expected to close before the end of this year, will see Dell acquire 3PAR for $1.15bn (£737m). 3PAR's products will then be added to Dell's existing line of PowerVault, Dell/EMC and EqualLogic iSCSI storage equipment.

Dell said that the move will help it deliver on its goal of reducing the cost and complexity of datacentre storage for customers, especially within virtualised environments.

3PAR's virtualised storage platform already includes high-end data management features, such as dynamic tiering and thin provisioning support, and is designed to be flexible and scalable, delivering what the firm calls "utility storage".

However, 3PAR is seen by many as a rival to EMC in the high-end storage market. Dell's partnership with EMC sees the company resell and support selected EMC products under its own brand, and the 3PAR acquisition could signal Dell's intention to eventually compete with its current partner in the enterprise market.

Dell had not responded to questions from V3.co.uk at the time of publication. In its announcement, the firm said only that, with 3PAR, it will offer innovative systems and customer choice at every storage tier, from direct-attached to highly virtualised clustered SANs.