Did Dell buy a dud?

In the past few weeks, I certainly have an axe to grind with Dell, notably their acquisition of Quest Software. I have been full of praise of how Dell was purchasing the right companies in the past and how the companies Dell acquired were important chess pieces that will propel Dell into the enterprise space. Until now …

Since its first significant acquisition into the enterprise with EqualLogic in 2008, there were PerotSystems, Kace, Scalent, Boomi, Compellent, Exanet, Ocarina Networks, Force10, SonicWall, Wyse Technologies, AppAssure, and RNA Networks. (I might have missed one or two). To me, all these were good buys, and these were solid companies with a strong future in their technology and offerings. Until Dell decides to acquire Quest Software.

At the back of my mind, why the heck is Dell buying Quest Software for? And for a ballistic USD2.4 billion! That’s hell of a lot of money to spend on a company which does not have a strong portfolio of solutions and are not exactly leaders in their respective disciplines, barring Quest’s Foglight and TOAD. A quick check into Quest’s website revealed that they are in the following disciplines:

 

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