Dell Goes After Malware and Deduplication

Dell Inc. announced that it shipped malware on some of the motherboards issued as replacements as well as a malware-fighting Web browser. Additionally, the company stated it will complete the acquisition of Ocarina Networks Inc., a storage deduplication vendor.

Focal Points:

• Dell has found that "a small number" of service replacement motherboards have been found to include malware included in their embedded server management firmware. These motherboards were issued for four server models including the PowerEdge R310, PowerEdge R410, PowerEdge R510, and PowerEdge T410 models. The company states that it has removed all affected motherboards from its supply chain and is in the process of contacting customers with infected hardware. Dell recommends customers keep current with antivirus software as the on-chip malware is a variant of the W32.Spybot worm, which can infect Microsoft Corp. Windows-based machines. To prevent similar issues from arising in the future, the company claims to have added 16 additional steps to its processes, though it has declined to details specifics on tracking and resolution enhancements.
• Dell has announced that it is making a customized Web browser freely available to help customers protect against Internet-borne security threats. The aptly named "Secure Browser" is available through Dell's Kace system management appliance subsidiary, and makes use of virtualization technology to deliver a sandboxed version of Mozilla Firefox 3.6 with Adobe Systems Inc. Flash and Reader plug-ins. Similar to the Microsoft User Account Control (UAC) functionality as found in Microsoft Windows Vista and Windows 7 operating systems, attacks are thwarted by alerting users whenever a new process is started in the browser. Secure Browser has previously been included in Kace K1000 appliances, and the company is also working on a Secure Browser solution for versions of Internet Explorer ranging back to IE6. 
• Dell unveiled plans to acquire the San Jose, CA-based storage startup Ocarina Networks, a maker of deduplication hardware and software, this week for an undisclosed sum. Ocarina's technology reduces storage requirements in unstructured data including e-mail and images using both deduplication and compression technologies. The company states that its products can eliminate between 30 and 75 percent of unstructured data storage requirements and that Dell intends to leverage Ocarina's capabilities into a host of storage optimization solutions ranging from backup, migration, and replication to primary storage and tiering. 

Experton Group believes this week's Dell-related activities accurately sum up the behemoth's activities as of late. As with many of its competitors, Dell is rapidly acquiring leaders in growing technology spaces to transform itself into a provider of enterprise software and services as it tries to break free of its commodity hardware roots. Unfortunately, the company has been plagued with a series of missteps in the recent past ranging from the inclusion of batteries in its Optiplex systems that it knew were faulty to fraudulent accounting practices that cost will cost it $100 million in penalties. Both of those issues were finalized within the last 30 days. At best, many of Dell's recent troubles are the result of the challenges of trying to manage a rapidly evolving enterprise as it radically changes its business model to adapt to market trends. At worst, the company is either unable or unwilling to maintain the quality control and professionalism required and expected of it. IT executives should keep a watchful eye on Dell over the course of the next few months and years to determine whether the company is trustworthy enough to remain on the corporate "short list" of IT providers. Furthermore, IT executives should ensure that service level agreements (SLAs) incorporate language that delivers rapid resolution to potential issues with Dell's product portfolio and implement stiff penalties for non-compliance.