Back in December 2007, a confident GlassHouse Technologies, sensing good prospects in its services and consulting area, filed for an IPO. In the spring of 2008, it entered a strategic partnership with Dell, made another acquisition - and then the recession happened. The company has started firing people as it cuts costs and …
Good deal, for Dell maybe
The problem GlassHouse have is that Dell are looking to acquire them cheaply. It's no secret that GlassHouse are suffering badly in the recession (hence the departure of Curtis Preston who was in many ways the face of the company) and the mainly US based investors want to see a return.
GlassHouse are also known to be struggling on the Managed Services front having recently had to let most of their UK based staff go.
Am I the only one
Who was hoping Michael Dell was being sent to Charle's Stross' future distopian prison?
Maybe its a good idea that someone like Dell takeover Glasshouse - it would give them a lifeline. They had some really good people in the business who were true experts in the storage business, but the senior management were only ever focussed on an IPO and when that evaporated the business plan crumbled.
Personally speaking, I think Glasshouse Technologies would be an excellent choice for Dell. As for Glasshouse being sold cheaply, what planet are you on? Haven’t you been reading the papers or listening to the news lately? This Credit Crunch means that ALL companies are struggling to go IPO at the moment, and that they are extremely unlikely to get the price they want if they are acquired by another company! What's new? As for letting people go, I guess they’re no different from other company, in that they can only afford to keep people who can justify their existence, especially when there’s a global recession happening!