EMC-Dell A Done Deal?
LAS VEGAS: Based on Joe Tucci’s very short but emotional keynote at this year’s EMC World 2016 conference, the Dell mega-merger is pretty much a done deal, and we only have to wait for the final details like the shareholder approval before the torch is passed to Michael Dell. At least that’s how it seemed as Tucci welcomed Dell on stage, before an audience of 14,000 customers, partners and staff, and later as he took part in a media scrum with his “old friend” he first met back in 1994.
Explaining why the merger, Tucci said “We have to change very rapidly, and very dramatically.” And while his ongoing involvement after the deal closes is expected to be at best minimal, he was bullish on the future. “This is not the end of something great, but the beginning of something greater.”
As his part of the opening keynote, easily twice as long as Tucci’s, Dell was even more bullish about the deal. “I’ve been looking forward to being right here on this stage since October, when we first announced the definitive agreement to combine Dell and EMC,” he said. “We are creating the next great technology company” for customers and partners.
He also revealed the new name of the company to be, Dell Technologies. “I think it has a nice ring to it.” According to Dell the new entity will include the combined technologies, companies and brands of Dell, EMC, VMware, Pivotal, SecureWorks, RSA and Virtustream.
However, EMC will live on, at least for the immediate future, as part of the new enterprise business — to be known as Dell EMC. Oh, and apparently the PC business will continue to be known as Dell. If you thought EMC’s federation was confusing…
Both Dell and Davie Goulden, CEO, EMC Information Infrastructure, said keeping EMC as part of the enterprise brand would leverage the storage giant’s 40-year heritage. The new BU would be roughly twice the size of EMC II’s unit, incorporating Dell’s server, storage, networking and converged systems assets and “two very well known brands”.
The theme of this year’s conference — in addition to Life With Dell — is modernizing the datacenter, and while that represents a huge and growing challenge to IT users, it is also a golden opportunity for the IT vendors that can successfully address that challenge. According to a recent EMC survey, IT isn’t working, including:
-the biggest need, at 90%, is for a documented strategy and roadmap, with less than 40% having it;
-95% want IT organizations with no silos, with just 4% saying they have it; and,
-70% want to transform their IT service strategy to run IT like a customer-focused business to help the business with measurable productivity gains and to combat shadow IT.
“The IT industry is in a state of massive transformation, resulting in both disruption and great opportunity,” said
Goulden, in a prepared statement. “Every business leader, across every industry, is facing the dilemma of how to support and grow traditional IT infrastructure while modernizing the data center in order to support the development of new applications and advance their digital agendas. Some are doing all of this simultaneously.”
Dell said we’re at the onset of the next industrial revolution, “staring into the future of infinite possibilities”, which is great news for the dynamic duo, which has a leadership position in 21 Gartner Magic Quadrants. “No one is more relevant or able to add value in your data centers.”
He also took the opportunity to slam one of his biggest competitors, HP/HPE. “While our competitors like HP are shrinking their way to success… they’re getting smaller… losing share to Dell… we’re going in the opposite direction.”
DISCLAIMER: My thanks to Stella and the fantastic PR and analyst teams for helping make this event so worthwhile — and of course to EMC for paying for airfare and hotel. And to Michael Dell for rearranging my stock portfolio. Again.