Compellent Technologies Inc.CML

Morningstar Rating

Stock Research and Analysis

by Michael Holt

Compellent Technologies is one of several young companies in the storage industry that found quick success by developing advanced storage technologies. Despite formidable competition from industry giants, we like Compellent's focused strategy and expect Read more

Bulls Say

Compellent derives less than 20% of its revenue from international markets. A commitment to channel partners could help it quickly grow in international markets.

As more midsize companies implement server virtualization solutions, demand for networked storage should increase during the next several years.

Standard hardware components reduce clients' dependency on Compellent for future maintenance and support. Read more

Bears Say

Larger competitors are aggressively pursuing this midsize market. Gross margins could be pressured as competition intensifies.

Revenue per unit of storage could drop faster than system capacities are increased, leading to lower gross margins.

Compellent's technological edge is fleeting. Larger competitors have greater resources to utilize in the race to deliver next-generation storage solutions.

Although we think the use of channel partners has been a good strategy to quickly drive growth in the midsize market, we believe Compellent lacks the marketing and distribution resources to effectively compete for large enterprise clients. Read more

Strategy

Compellent has primarily focused on selling to the medium-sized enterprise market by offering easy-to-manage networked storage systems with advanced features. The company utilizes channel partners exclusively Read more

Management

President and CEO Philip Soran has been at the helm since co-founding Compellent in 2002. We are impressed by the resumes of senior management. Soran and co-founders John Guider and Lawrence Aszmann each have more than 25 years of industry experience Read more

Profile

Compellent specializes in data storage systems designed to be less costly and easier for medium-sized businesses to manage. Its systems consist of industry-standard hardware Read more

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