Comments on: Changing channels

By: Brenon Daly

Brenon Daly — Mon, 20 Oct 2008 17:45:34 +0000

Sporadic profitablity is NOT sustained profitablity. (Witness, the $50m+ in accumulated deficit at EqualLogic.)

By: Steven Schwartz

Steven Schwartz — Mon, 20 Oct 2008 17:37:44 +0000

Well, that is under the assumption that growth of Q4 was only 2x the previous year. I’m willing to concede at $150M publicly.

However, your statement about profitability is wrong.

Looking at the final S-1A submitted for numbers through Q3-2007, Net Income in a positive number was reported for June2006, December2006, and sept.2007. event in June 2007, it was an “almost” profitable business with being negative only 360k.

By: Brenon Daly

Brenon Daly — Sun, 19 Oct 2008 17:22:49 +0000

Steven — I think you’re being a bit ambitious in your assessment of EqualLogic. I don’t know what financial statements you’re looking at but final S-1 has EqualLogic q1-q3 2007 (up to takeout) at $90m in sales. YTD it had doubled sales, so if we figure that continued in q4 2007, it would leave full year sales at $140m, a fair distance from your $200m target. Also, EqualLogic had never — not once — turned a profit.

By: Steven Schwartz

Steven Schwartz — Fri, 17 Oct 2008 00:15:46 +0000

At time of the announcement of acquisition by Dell (Nov. 2007), Equallogic had almost 5000 customers world wide. Revenue was close to $200 Million. This was 5x the number of customers that Compellent has now. (they just announced the 1000th customer in July of 2008, 8 months after the Dell announcement). Compellent is on target to close maybe $100 Million in revenue (at a LOSS) for fical year 2008. Equallogic closed 2007 with almost $200 Million at a profit.

By: APaxtonatDell

APaxtonatDell — Mon, 18 Aug 2008 19:22:34 +0000

On behalf of Dell, I’d like to respond with the facts. In Q2 alone, more channel partners closed business with Dell EqualLogic offerings than in any quarter in the history of EqualLogic – – and that doesn’t count the collaboration outside of our Americas region.

We are seeing a larger and more diverse set of partners closing business. In fact, fewer than 10% of EqualLogic former partners have opted out but, in turn, Dell has seen an 84% growth of partners certified at top level to sell EqualLogic.

While there are misperceptions about Dell remaining in the channel, we’re working hard to put them in the history books by developing loyal Dell partners — and that includes quickly addressing issues as they arise. Thanks for the opportunity to tell our side.

By: Chris

Chris — Sun, 17 Aug 2008 23:30:10 +0000

Well all acquisitions go through a transitory phase. And of course the DELL (almost entirely direct) buy of EqualLogic (100% Channel) was going to be an issue.
However I believe form the numbers I have seen publicly, DELL has signed on vastly more channels since the acquisition than either Compellent and Lefthand combined have managed to ‘poach’.
And at time of acquisition I believe EqualLogic was in the several thousand customer mark – gee can’t imagine how many have been added now. And what Compellent is at what? 1000 ! Gee…so what.
There are always going to be naysayers I guess and teh investors in Compellent and Lefthand need to talk up their lot I suppose…