Dell to buy EqualLogic

On Monday, Dell announced the biggest acquisition in the company's history, a more than $1 billion deal to purchase storage virtualization company, EqualLogic.

According to the MSNBC web site, "In addition to EqualLogic's virtualisation technology, which greatly increases the efficiency of data storage, the deal will give Dell access to EqualLogic's relationships with more than 500 'channel partners' - the third-party companies that design and install computer systems for hospitals, banks and other corporate clients."

EqualLogic is based in Nashua, New Hampshire and provides services to over 1,200 customers in 30 countries. Its software allows one computer to network with multiple computers allowing companies to spend less funds on hardware and energy.

"Our customers will be dealing with the largest increase in data we have seen in our history over the next few years. Leading the iSCSI DEFINE revolution will help Dell accelerate Internet Technology simplification and virtualization and will drive the Dell value proposition into more areas of the enterprise storage business." said Dell's chief executive Michael Dell

A network connection standard, iSCSI is a storage technology that allows the use of SCSI, or "small computer system interface," connection over the Internet. In afternoon trading, shares of Dell went down 0.8 % to $29.81.