Dell Announces Intent to Acquire Security Company SonicWALL
Dell has announced its intention to buy network security and data protection vendor SonicWALL, a move that further rounds out Dell’s technology lineup in the networking and data center space.
Details of the acquisition will be discussed during a conference call slated at 11 a.m. Eastern March 13, but in the release announcing the acquisition Dell noted SonicWALL’s technology, including its Next-Generation Firewall and Unified Threat Management (UTM) Firewall technologies, “complement Dell’s security solutions portfolio, enabling it to offer customers a broader range of enterprise offerings.”
Not mentioned: SonicWall could give Dell’s channel partners some recurring revenue opportunities in the managed services market.
The SonicWALL deal is the latest in a line of acquisitions designed to bolster Dell’s security portfolio, which includes Dell SecureWorks security services, cloud security solutions and data encryption solutions (all culled from its 2011 acquisition of SecureWorks), as well as its Dell KACE vulnerability and patch management (culled from its 2010 acquisition of KACE). SonicWALL will bring to Dell’s table a plethora of enterprise-focused security solutions including firewalls, secure remote access, email security, backup and recovery, and policy, management and reporting.
Although the terms of the deal were not immediately disclosed, according to the press release the transaction was approved by the board of directors of each company and is expected to close in the second quarter of Dell’s FY13.
Wow. Didn’t see this one coming! I guess they’ll stay geared towards SMBs? We shall see…:)
Looks like it is time to buy WatchGuard!
[email protected]: Ironically, several of The VAR Guy’s readers predicted this deal more than a year ago. Chief among them: Mark Crall, an Autotask veteran now at GloStream (director of partner programs).
[email protected]: Why so down on Dell-SonicWall? Sure, Dell has had some channel challenges. But the company has also made significant progress in the channel with EqualLogic, Compellent, etc…
-TVG
Don’t get me wrong… I’m not “down” on the Dell-SonicWall deal. I’m “up” on the opportunities for channel partners who see this disruption as a positive thing. I’d be curious to hear what Juniper channel partners have to say today since the Dell/Force10 acquisition? I wonder how many SonicWall MSSPs are looking at how SecureWorks will eat their lunch? Again, I don’t know the answers… I think it’s just a good time and opportunity for the channel as a whole to look at other alternatives.
As a SonicWall channel partner at a higher level since there WAS SonicWall, I am DOWN on the deal. Dell’s Channel strategy has always been “Channel? What channel?” and to undercut price-wise or cut out any channel partners ability to work deals with customers the partner solicited, recruited, and sold on a project or solution. Even with customers I service who use Dell gear and purchase “gold support” contracts from Dell, it’s a total nightmare to obtain service or get them to ship warranty parts. SonicWall has built an excellent product, with great features for both SMB or Enterprise customers, and there’s always been the ability as a SonicWall partner to sell the product, and make ongoing revenue via management services, renewal of security services and hardware support contracts as a “value-add”. Once Dell completes the acquisition and rebrands the product, all of that will dry up and go away when they internalize it. So yes, it is time to re-think our entire position on network security appliances and Watchguard is on the list as a strong potential replacement. Dell’s intent is to bring all SonicWall Medallion partners into their PartnerDirect group and everyone is trying to make nice about it. But history often repeats itself with Dell, and I’ll believe it when I see it.
[email protected]: The VAR Guy agrees… Mamp;As (including Dell-SonicWall) trigger inflection points. The VAR Guy will be watching to see how the various partner groups you mention respond…
[email protected]: The VAR Guy welcomes a healthy dose of skepticism… including your comment and your time. The VAR Guy keeps pointing to recent, successful deals (Dell-Compellent, Dell-EqualLogic) as clues that Dell knows how to buy channel-centric companies without destroying the underlying channel program value and product value. Still, The VAR Guy will be watching to see if Dell “gets it right” with SonicWall…
-TVG
VARguy – even SonicWall is facing the skepticism. During Wednesdays WebEx, the first partner call-in was a 1st gen SonicWall partner and a member of their “VAR Council” and he started his comment about being in
both partner programs – and how he could quote a project and have Dell undercut him on price if the customer went to dell’s website directly. It was meant jokingly, but it’s a telling tale. Time will show the truth. Meanwhile the channel watches, and waits… And makes contingency plans.