Dell announced it woll acquire storage firm EqualLogic for $1.4 billion. EqualLogic develops storage area network (SAN) systems based on the iSCSI standard.
The iSCSI standard is designed to operate on a company's existing Ethernet network, meaning businesses could lower costs by forgoing the need to install fiber networks.
"Our customers will be dealing with the largest increase in data we have seen in our history over the next few years," Michael Dell, chief executive, said in a statement. "Leading the iSCSI revolution will help Dell accelerate IT simplification and virtualization."
Virtualization software allows users to run a number of operating systems simultaneously on the same computer.
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Dell, which has slipped a notch in the PC market, has been increasingly turning its attention to storage.
Dell says the EqualLogic technology will be integrated into the PowerVault storage products. The EqualLogic brand will be retained for current and future products.