StorageTek purchase makes sense

StorageTek purchase makes sense

GRAHAM Penn, IDC associate vice president Asia-Pacific storage, says Sun’s acquisition of StorageTek makes sense.

He says earlier in the year Sun realised its storage line was only addressing the slow-growth market and that organic growth was never going to pay off.

“Sun’s options were reasonably limited so it’s gone for the largest independent vendor in the market. It’s not that surprising because it’s such a complementary acquisition,” he says.

Penn believes the deal could push Sun up the ladder to become the leading storage vendor. “StorageTek has consistently had a $2 billion market for the last five years. Not only does Sun acquire extra revenue but a whole new reseller channel.” He says that while it’s inevitable there will be some degree of staff rationalisation, he thinks it will be in administrative, marketing and human resource departments.

“Sun needs to keep the StorageTek customer-facing people onboard - that’s the point.”

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