Dell Completes Acquisition of Data Center Networking Leader Force10 Networks

Dell today announced it has finalized its acquisition of Force10 Networks, a leader in high-performance data center networking. The Force10 acquisition is Dell’s latest investment to broaden its networking portfolio to deliver its Virtual Network Services Infrastructure. Dell expects the transaction to be accretive to earnings in the second half of next year.

Dell has taken significant steps over the past three years to expand its enterprise presence as a complete solutions provider. In addition to strategic acquisitions, such as Force10, Dell expects to hire several hundred new team members in engineering, sales and marketing, and services jobs at the Dell Silicon Valley R&D Center.

Dell recognizes that the network infrastructure to deliver applications or information is critical, regardless of location or end point device. Dell sees the data center as the focal point and its network must be transformed into a streamlined, efficient, and policy-driven network that is responsive to changing applications and end-user demands.

Dell with Force10 is a global technology leader in data center networking for service provider and enterprise customers. Force10’s Open Cloud Networking based on open standards, automation and virtualization matches Dell’s philosophy. Dell Force10’s technology allows customers to transform network infrastructures into an open, reliable and scalable data center and cloud computing fabric. Force10’s technology is a natural complement to Dell’s existing data center strategy and enables a strong solution alignment with Dell’s server, storage and systems management portfolio. With the combination of Force10 and Dell’s current PowerConnect portfolio, the company now offers a comprehensive switching strategy for data center, enterprise and campus/branch environments.

As with past acquisitions of Compellent and EqualLogic, Dell is committed to maintaining and growing the existing Force10 channel program. Dell Force10’s customers include leading Web 2.0 and Fortune 100 companies, Internet portals, global carriers, leading research laboratories and government organizations with some of the world’s most demanding network environments.

Distinguishing Characteristics of Dell Force10

• Flexible, open automation and management for increased infrastructure control and visibility.
• Automated policy configuration and workload mobility for improved operational agility.
• High-performance top-of-rack and data center core networking solutions for next- generation solutions.

Dell’s Virtual Network Services Infrastructure

• Automation of virtual machine management and movement across data centers regardless of scale while maintaining visibility, security policies and resource efficiency.
• Enable improved manageability to reduce IT resources and deployments by standardizing IT processes while consolidating storage, server and networking infrastructures.
• Deliver a cost effective, flexible and efficient networking infrastructure which instantly responds to evolving application needs for agile, business-driven responsiveness.

Quotes

"Data center networking is going through a significant transformation to support applications and virtualization and meet the needs of end users and IT administrators. Simply put, customers need a new approach, which is what we are calling Virtual Network Services Infrastructure,” said Dario Zamarian, vice president and general manager, Dell Networking. "Force10’s history of product innovation and technology leadership in data center networking matches and accelerates our vision.”

"The addition of Force10 Networks technology gives Dell a data center-class networking portfolio, enabling the company to deliver on converged infrastructure,” said Cindy Borovick, Research Vice President, Data center Networking, IDC. "Force10 Networks technology architecture will integrate well within Dell's virtual data center vision.”¹

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¹ IDC, Event Flash: Dell Announces Acquisition of Force10 Networks, Doc #229582, July 2011.Special Note:

Statements in this press release that relate to future results and events are forward-looking statements based on Dell's current expectations. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. Risks, uncertainties and assumptions include the possibility that projected benefits may not materialize as expected; that Dell is unable to successfully implement the plans, strategies and objectives of management for future operations, including the execution of integration strategies; and other risks that are described in Dell’s Securities and Exchange Commission reports. Dell undertakes no obligation to update these forward-looking statements.