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» VIEW ALL POSTS Mar 14 2012   8:43AM GMT

Dell offers deals for EMC, NetApp customers



Posted by: Dave Raffo
Tags:
compellent
dell storage
emc
equallogic
netapp

Dell is trying to bolster flagging storage sales with a trade-in program that offers cash credits and improved lease terms to EMC and NetApp customers.

The Dell Storage Swap program launched today promises price breaks for organizations willing to retire EMC VNX, Clariion and Celerra and NetApp FAS arrays to move to Dell Compellent and EqualLogic storage before July 31. Dell pledges “specialized migration services,” support and “other financial incentives” for customers who switch.

When a vendor offers such a swap program, you can bet sales are not strong. That is the case with Dell, which has lost market share since ending its OEM relationship with EMC after acquiring Compellent last year. The Compellent deal followed Dell’s 2008 purchase of EqualLogic. Now Dell is banking on customers switching for the incentives and becoming happy enough with the results to stay with Dell long-term.

Even if Dell’s formal swap program is new, the strategy isn’t.

Christopher Patti, director of technology for AccuWeather, said Dell gave him a good enough price to switch from EMC Clariion and Hewlett-Packard EVA storage to EqualLogic in 2008. That was merely months after Dell bought EqualLogic and while it was still an EMC OEM partner. Patti said upgrading his older Fibre Channel arrays from EMC and HP would have cost in the high-six figures. He bought two EqualLogic iSCSI SANs and has since added four more EqualLogic arrays.

“The Clariions and EVAs were ridiculously expensive, especially with day-to-day maintenance, upgrades and extra costs for replication, snapshotting and other things here and there,” Patti said. “Dell gave us a good price point.”

He said he also likes that EqualLogic data protection and management features are part of the base price and not add-on licenses. “Dell’s software makes it easy to manage the array, see where bottlenecks are and know when you have to purchase additional capacity,” he said.

Server vendors Dell, HP and IBM are losing share in the storage market to pure-play storage vendors EMC, NetApp and Hitachi Data Systems (HDS). According to Gartner’s worldwide external disk storage revenue report released this week, Dell’s storage revenue dipped 0.2% from 2010 to 2011 while the market grew 9.8%. Dell’s market share slipped from 8.2% to 7.4% during the year and it stands sixth behind EMC, IBM, NetApp, HP and HDS.

The targets of Dell’s trade-in program, EMC and NetApp, ranked first and second in revenue growth for last year.

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