In Q3 FY12 (August, 2011), we closed our acquisition of Force10 Networks, a leader in high-performance data center networking. One year later, we’re taking a closer look at the acquisition and the impact it has had on our networking business.

Dell has a track record of investing in acquired companies post acquisition to drive accelerated innovation and business growth. The acquisition of Force10 has been no exception. Since acquiring Force10, Dell has grown the Networking R&D team by 1.5x with over 700 engineers now on staff. This investment has resulted in a series of innovative product launches over the past year, including the rollout of our Virtual Network Architecture (VNA) for open virtualized networking, the industry’s first 40 GbE blade switching solution, and Dell Fabric Manager for simplified data center fabric deployment and management.

Combined with Dell servers and storage, Force10 enables Dell to sell a full suite of solutions to data center customers. In fact, Force10 products and technologies can now be found in over 15 different Dell-engineered solutions from storage solutions, to converged solutions, to workload solutions. Dell networking has benefited directly from this synergy, doubling their data center customers since the Force10 acquisition. As a result, Dell networking posted +94% Y/Y revenue growth in Q2 FY13, driven by the acquisition of Force10 and PowerConnect growth of +39% Y/Y. This was our 7th consecutive quarter of sequential topline networking growth. And with this, we have secured the #3 market position 10GbE and 40GbE switching according to Dell’Oro. 

Keep an eye on Dell Networking and watch and listen for continued success. And as always, we welcome your feedback.