Dell recently indicated that it intends to purchase the software firm Boomi. This move symbolizes Dell's desire to expand its presence into various markets, specifically, the corporate technology market. Boomi is uniquely important to Dell due to their ability to integrate web-based business-software applications to ensure data is effectively transferred between software utilized in remote locations and subsequently on site locations. The article highlights how technology suppliers, such as Dell, have been trying to increase their portfolios in the data-center market. It cites a key competitor, Hewlett-Packard, in which they recently lost a bidding battle to regarding the data storage maker 3Par.
The reason why this article is important correlates to an earlier post I had regarding HP's acquisition of McAfee. A larger trend amongst telecommunications companies has been arising in which the importance of expanding portfolios, specifically in areas such as software expansion, plays a vital role to the business' growth. Software is having an increased role in various aspects of life, ranging from military application to in-car entertainment. This increased role of software necessitates improves in software technology in order to ensure the most effective and secure technology. The Dell-HP rivalry shows how companies are drastically attempting to expand their market portfolios. The end of the article indicates how CEO Michael Dell recently said in an industry event that the company was planning on announcing a cloud-computing acquisition which has spurred a market-wide speculation on potential targets. This announcement shows that Dell has future plans for acquisition of companies that will strengthen their hold on the market. Cloud-computing involves the shared resources, software, and information provided by computers and other devices, such as smartphones, on demand over the internet. Here we see a unique application of their recent software acquisition. Dell will potentially want to integrate Boomi's software capabilities with a cloud-computing company in order to provide effective information sharing technology that could bolster their growth.
Cite:
http://online.wsj.com/article/SB10001424052748704462704575590623475642774.html
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