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By | Austin Modine 11th February 2010 23:35

Dell acquires SMB systems babysitter Kace

Fills Perot gaps

Dell says it will purchase Kace Networks, a maker of systems management appliances, which the vendor hopes will reel in more midsize business sales.

The acquisition - for an undisclosed amount - is expected to close during Dell's first fiscal quarter.

Kace's flagship product is the Kbox line of appliances, which target IT shops who have a large number of systems to babysit but who can't afford a systems administrator or software-based server management. A Kbox appliance starts at around $5,000.

The purchase fits quite nicely to round off Dell's recent $3.9bn purchase of Perot Systems for its service management biz.

Perot Systems has a background in managing systems for local, state, and federal governments. About 47 per cent of its revenues come from the public sector, 32 per cent from large enterprises, and only 12 per cent from SMBs.

Kace's appliance-based approach appeals more to midsized businesses, but claims government, education, and healthcare customers as well.

On its website, Kace said that all the company's 125-person workforce will be absorbed into Dell while remaining at their Mountain View, California headquarters or respective branch offices.

Kace CEO Rob Meinhard said Dell will provide the company with a global market reach as well as increased R&D for its Kbox products. ®

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