Dell to buy Quest Software

Dell is set to buy Quest Software, a provider of IT management software. Quest has generated $857 million in global revenue based on its fiscal year 2011 results at gross margins of 86 percent and operating margins of 11 percent.

Recently, Dell formed its Software Group, expanding Dell’s enterprise solutions capability.

Quest’s software solutions and key technologies are aligned with Dell’s software strategy.

The new group accelerates strategic growth and further differentiates the company from competitors by increasing its solutions portfolio with Dell-owned intellectual property.

The acquisition of Quest Software provides critical components to expand Dell’s software capabilities in systems management, security, data protection and workspace management. Quest’s software portfolio is complementary to Dell’s design approach to develop solutions that scale with customer needs.

Quest One Identity and Access Management solution adds to Dell’s security assets with SonicWALL and Secureworks, creating a set of security solutions to address important customer needs.

Quest’s Performance Monitoring solutions for applications, networks and databases address a growing need for our customers.

Quest’s Windows Server Management solutions complement Dell Services’ rapidly growing application modernization practice with recently acquired Clerity Solutions and Make Technologies.

The addition of Quest, including its 1,500 software sales experts and 1,300 software developers, to Dell’s existing software expertise in systems management, security and cloud integration, is the foundation of a $1.2 billion software business, based on annual revenue.

“The addition of Quest will enable Dell to deliver more competitive server, storage, networking and end user computing solutions and services to customers,” said John Swainson, president, Dell Software Group.

“Clearly, Dell’s distribution, reach and brand are well recognized in the industry. Combine that with Quest’s software expertise and award-winning systems management products and you have a very powerful combination for our customers and partners,” said Vinny Smith, chairman and chief executive officer of Quest Software.

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