Mr. Black divorces Miss Purple
The writing’s on the wall and the relationship has been on the rocks since Mr. Black decided to take on 2 new wives (one in 2007 and one in 2010) and Miss Purple had a good run when things were hot.
Why Black and Purple? For a while within the local circle of EMC Malaysia, Dell’s EMC CLARiiONs were known as “Black” while EMC’s own CLARiiON was “Purple”. They were the colours of the bezels of each respective storage box. And the relationship, which Dell signed with EMC in 2003, was supposed to last 10 years but today, Dell has decided to end that relationship 2 years early. Here is one of the news at eWeek.com.
The “divorce” was inevitable. Gaps started showing up in the relationship when Dell acquired EqualLogic in 2007 and this relationship went to a point of no return when Dell started pursuing 3PAR back in 2010. Dell eventually lost 3PAR to HP and got Compellent instead. It was bound to happen, sooner or later.
Storage is becoming a very important strategy for Dell. As server virtualization grows, the demand for Dell servers wanes but storage demand kept growing. That is why it makes sense for Dell to have their own storage techonology. In addition to Compellent and EqualLogic, Dell has also acquired Exanet and Ocarina Networks in 2010.
It has been a good run for both companies, especially EMC, who was able to make use of Dell’s aggressive sales force to increase their market penetration for CLARiiON. And given the market dynamics, it is crucial that a company like Dell, with little innovation in the past, change their approach of reselling other people’s products and start owning and developing their own technology.