SANRAD CEO - Dave DuPont wrote to SANRAD employees about EqualLogic acquired by DELL

Subject: Dell and Equallogic - My Thoughts

Hi Everyone,

By now you are all aware that Dell intends to acquire Equallogic.
Because it has significant implications for our market and business, I
would like to provide my perspective about what the announcement means
for Sanrad:
- The announcement instantly
validates the iSCSI SAN market. Dell would not be interested unless
they sensed a large, near-term market opportunity.
- Dell will be using its vast
resources to educate the market about the benefits of iSCSI SANs.
Sanrad has the opportunity to leverage this educational investment.
We will no longer have to evangelize iSCSI; customers will be looking
for it.
- Equallogic's channel will be thrown
into turmoil. Most of the channel views Dell as a competitor, and
many of Equallogic's existing channel partners will be looking for an
alternative. Sanrad, with its differentiated, iSCSI SAN solution and
channel-only focus, can take advantage of this discontent. Sanrad
exclusively sells through the channel; there is no channel conflict.
We are in a perfect position to pick up knowledgeable resellers who
are already selling iSCSI SANs.
- Equallogic is going to be
distracted and Dell will take some time to integrate the new products
and organization. Sanrad has a 12 - 18 month window to attack the
market while Dell figures out what to do with its acquisition.

We have, in brief, the kind of opportunity now that comes along
rarely, if at all, in a lifetime. A phenomenal market is developing,
an already trained channel will be looking for alternatives, and we
have a differentiated solution. It simply does not get much better
than this. That does not mean it is going to be easy. Nothing is
going to be handed to us. We are going to have to move fast, we are
going to have to execute well. But I know we can and we will. I am
excited about working with you to make Sanrad even more successful
than Equallogic.

Best regards,
Dave


Dave DuPont
CEO
650.938.6303 x111

www.sanrad.com

SANRAD VP of International Sales quit (Nov 2007)