) is on an acquisitions spree. After acquiring Clerity Solution --
a provider of application modernization services -- in April 2012,
the company has recently acquired software company Make
Technologies Inc. Financial details were not disclosed.
Make Technologies provides software and services that modernize
traditional applications used by cloud-based systems. The
cloud-based products from the company have the capacity to cut
cost, reduce risk and re-engineer applications.
This looks like an ideal combination, as it is likely to result
in single vendor solutions for any modernization activity. It
should therefore open up growth opportunities for Dell's core
application modernization software and services.
Acquisitions have helped drive significant growth at Dell.
Earlier in February, the company agreed to buy Virginia-based
backup and replication software maker, AppAssure Software and
followed this up with the acquisition of California-based SonicWall
Last year, the company completed the acquisition of storage
solution provider Compellent Technologies Inc. This acquisition has
enhanced its portfolio in the automated data transfer and
management, tiering and thin provisioning segments.
Although Clerity is a very good takeover by Dell, we are unclear
about the extent to which the acquisition will be financially
accretive. But we believe that the continued enhancement of the
enterprise solutions portfolio would generate higher revenue, going
forward. We also think that the positive impact of all the
acquisitions may not be evident for some time, as the new units
would take time to gel with the existing capabilities.
We understand that soft demand in the Consumer segment, a high
debt level and stiff competition from technology majors will remain
concerns, but we feel that Dell will successfully capitalize on
increasing IT expenditures and show top-line improvement.
Currently, Dell has a short term Zacks #3 Rank.
DELL INC (
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