An article posted on CIO.com today announced that Dell has hired away a former Cisco executive, Dario Zamarian, to head up its networking division. Zamarian will be the first vice president ever dedicated to Dell's networking division, which signals that Dell is putting more emphasis on networking than ever before.
As we talked about in class, more and more data and software are moving into "the cloud", which means that network usage will continue to grow rapidly in the coming years. Networks are also being increasingly taxed by the rapid proliferation of mobile search. It used to be that someone had to be sitting in front of a computer in order to perform a Google search or surf the internet. Now with smartphones, those same people can surf the internet anytime and from anywhere, leading to many more searches being performed overall.
Dell has clearly recognized this trend and is now playing catch up in the space. Just a few weeks ago we saw them engage in a pricing war with HP over 3Par, a leading, high-end storage vendor specializing in cloud services. By the time HP finally emerged victorious, the two companies had bid up 3Par's stock price to a multiple several times higher than it was at the beginning of the war. It seems that Dell isn't giving up, however. It is now speculated that Dell may try to acquire Brocade, another storage networking player. It'll be interesting to see if there will be further consolidation in the sector as the big guys who are behind the curve acquire smaller, more innovative firms.