With Sonicwall, Dell aims for a bigger share of CIO wallet

by CXOTODAY Staff    Mar 14, 2012


Dell wants a bigger share of the CIOs’ wallet, and the latest acquisition of security software maker Sonicwall will help the company expand beyond computer hardware and compete better with rivals.

While the companies did not disclose financial details, people familiar with the matter told The Wall Street Journal that Dell paid some $1.2 billion.

The acquisition will help Dell gain a bigger share of the global enterprise IT spending, which is projected to total $2.7 trillion in 2012, a 3.9 percent increase from 2011 spending of $2.6 trillion, according to Gartner.

“We are building a strategic software portfolio to address the needs of our customers with key assets in fast-growing and highly profitable IT security solutions business,” said John Swainson, president, Dell Software Group, Dell Inc.

Sonicwall products that range from firewalls, email protection and data recovery, will help Dell sell bundled solutions to large and small and medium businesses in India as well.

“Dell’s distribution, reach and brand are well-recognized across the industry. This transaction aligns well with Dell’s mid-market design focus and allows us to accelerate growth of our flagship SuperMassive Next-Generation Firewall solutions with Large Enterprise customers,” said Matt Medeiros, president and CEO, SonicWALL, Inc.