Backup, SonicWall, Quest, and Dell

by Mark Campbell on March 14, 2012

“Then you better start swimmin’, Or you’ll sink like a stone, For the times they are a-changin'” [Bob Dylan]

“The more things change, the more they stay the same.” [Jean-Baptiste Alphonse Karr]

The Wall Street Journal reported that Dell is buying SonicWall for $1.2B.  So what do backup and Quest have to do with this?  Both SonicWall and Quest have relatively minor parts of their business that offer backup.  Quest announced a few days ago that it wanted to do a management buyout with Insight Venture Partners (more on this here).  Dell is buying SonicWall from Thoma Bravo, a private equity firm that took SonicWall private for $717M in 2010.

Beyond the obvious fact that buying and selling companies seems to be a good business :), what does this mean for modern backup?

SonicWall has a small line of backup appliances called the CDP series.  Back at the time of the acquisition of SonicWall by Thoma Bravo, the revenue from this unit was actually falling – from $12.2M in 2007 to $10.2M in 2008 to $8.6M in 2009.  The SonicWall CDP series is more heterogeneous than AppAssure with a CDP architecture that in my experience limits the scalability of the appliance (note: I say my experience because I own a few SonicWall devices I purchased competitively) – and it’s not clear to me how you’d merge the two lines.  While in theory tying together more heterogeneity into AppAssure would be a smart play, most inorganic data protection acquisitions fail to ever unite two platforms (the most famous example being Symantec’s Backup Exec and NetBackup.)  And the near-CDP snapshot  architecture of AppAssure has a good enough RPO (Recovery Point Objective) that it doesn’t make a lot of sense to try to force fit a true CDP appoach into it.

The other group impacted by this is SonicWall resellers.  Given the relatively small footprint and growth of the SonicWall CDP-series, that’s admittedly not a large group – but for those selling data protection it is going to mean that they need to rethink their offering.

Anyway, that’s my opinion – what do you think?

 

Leave a Comment

Previous post:

Next post: