Gale Technologies offers software that can help customers turn discrete compute, network and storage resources into integrated solutions featuring self-service and automation, reported Xinhua.
Without disclosing the financial terms of the deal, Dell said it plans to keep Gale Technologies' employees and will continue to invest in additional engineering and sales capability.
Dell also announced that it will use the acquisition to form a new Enterprise Systems and Solutions division to design and deliver integrated enterprise information technology (IT) solutions.
Privately-held Gale Technologies was founded in 2008 and is headquartered in Santa Clara in the US state of California.
The purchase is the latest indication of the increasing competition among technology giants to create one-stop shop which packages compute, storage, network, software and other components into a single, optimized IT solution for enterprises.
Dell's deal came a day after Cisco, the world's largest maker of computer networking equipment, announced Thursday that it intends to pay $125 million to buy Cloupia, an infrastructure automation software provider similar to Gale Technologies.