The EMC Elephant Stomps Dell World
Oct21

The EMC Elephant Stomps Dell World

AUSTIN, TEXAS: While EMC will enable Dell to join IT’s 800-pound-gorilla club, pretty much everybody at Dell World 2015 — especially a really pumped Michael Dell and his executive team — is talking about the proposed acquisition, and speculating on what it means for the companies involved, their customers and prospects, and their competitors. So now the gorilla can keep company with the elephant-in-the-room metaphor. The stomping began on October 12 when Michael Dell, MSD Partners and Silver Lake announced the proposed acquisition of EMC in a deal valued at $67 billion, dwarfing all other previous IT mergers and acquisitions. Michael said the transaction will unite Dell’s ‘strength with small business and mid-market customers with EMC’s strength with large enterprises to fuel profitable growth and generate significant cash flows.’ “Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,” he said in a prepared statement. His EMC counterpart, Joe Tucci, was equally optimistic about the new company’s prospects, and why the acquisition was necessary: “… the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era.” The combination of EMC and Dell will create an $80-billion company, said Michael at a press event on Tuesday. For its most recent quarter EMC reported consolidated revenue of $6.07 billion, with VMware contributing $1.59B, and Pivotal a meager $64 million. That would put Dell’s share at $56 billion, which is in keeping with the best guesstimates for the private company. “Go big or go home, baby,” said Michael, talking about how EMC addresses the issue of a privately held company making aggressive acquisitions. However, from a financial perspective, the acquisition is expected to add more than $40B — as part of the $50B-plus EMC will cost — to the $12B still outstanding from the $25B it cost to take Dell private. “Dell and EMC are a dream combination,” he said. “We complement each other beautifully.” Combined, the two companies lead in 22 Gartner Magic Quadrants, said Michael. As an added bonus, EMC will now be private and out from under the 90-day financial proctology exam that is the norm for public companies. “As I like to say, EMC, $67 billion. Being master of your own destiny, priceless!” In an open letter, Michael shared his thoughts and intentions on VMware, basically committing to ‘continue to offer choice and multiple partner offerings as we always have and always will.’ VMware will remain an independent public company, and there are...

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Dell: The Business Of IT, And ITs Future
Oct20

Dell: The Business Of IT, And ITs Future

AUSTIN, TEXAS: Surpassing the events that led up to Dell World 2014, the company’s coming-out party as a privately held venture, would be difficult to imagine, but the announcements that Dell intends to buy EMC/VMware/RSA/Pivotal/whatever, and the sales agreement with CDW a week before Dell World 2015, make this week’s event an even more compelling proposition for the entire IT industry. If the acquisition goes through next summer, then Dell will become the second largest IT vendor, following only IBM, and way ahead of the soon-to-be-two HP. There will be a number of product and service announcements made this week, but while Dell was trying to drive a stake through HP’s heart, or at least HPE’s last week, it was also releasing the results of its Global Technology Adoption Index 2015. According to the study, companies investing in cloud, mobility, security and Big Data are growing up to 53% faster than laggards. “Organizations that are in a growth mode are taking advantages of technologies”, said Bryan Jones, VP of Marketing for North America and Global 500, Dell. Security remains a significant challenge, he told IT Trends & Analysis, as well as cost, but there has been improvement between last year’s inaugural study and 2015. Last years, organizations had a plan around security and this year they’re doing something about it, he said. There has been a major shift in adoption, and  “having a comprehensive security strategy has gone up dramatically over last year.” Jones said security adoption has climbed a 100% year-over-year. The study also reported that revenue, rather than risk, is driving security initiatives with 75% of organizations. Jones said last year risk was the biggest driver. Now you have companies moving to that next stage, how do I take that and turn it to a competitive advantage and take the next step. This year’s survey also found that organizations are saying the cost of storing data and getting value out of it is a challenge. Jones said one of the things the research is used for is to inform Dell’s acquisition strategy, as well as package its solutions. “Everyone sees a benefit to it but some of them haven’t been able to crack the code from a cost perspective.” Another topic he found really interesting was the mobility adoption. Mobility makes a lot of sense but we’re challenged in a couple of areas, i.e. security, breaches, and BYOD. “It’s obvious to me that we as an industry still have a lot to do about bring your own device.” Mobility can be a game changer for a number of companies, but security remains a really common concern. “Folks...

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What Happens To RSA?

While last week’s Dell/EMC merger was certainly a blockbuster, nothing specific was mentioned about future plans for RSA Security. Michael Dell did say that there were a “number of discussions about security” during the negotiations, but apparently, no concrete plans yet. Infosec reporters have lobbed phone calls into Round Rock Texas as well as Bedford and Hopkinton, MA looking for more details, but Dell and EMC officials haven’t responded. Based upon a week of vague reports, it’s safe to assume that there is no master plan for RSA at this time.  While we in the cybersecurity world have a nostalgic bond with RSA, it really is small potatoes as part of this mega-deal in the IT space. Nevertheless, RSA is a marquee $1b+ brand-name company in the red-hot cybersecurity space, so there is certainly value to be had. To read the complete article, CLICK...

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Dell Set to Buy EMC

What do we know? Well, this would be the largest tech acquisition ever….and by a long way. Once it goes through there’s going to be enormous focus on such things as the suitability or otherwise of the cultures, channels, and portfolios of these two behemoths. In the meantime, we don’t know a whole lot else…..although I have seen some fabulous puns and jokes already today (my favorites are that the new company could be called “Run DMC,” that EMC is “going to Dell in a hand-basket,” and that if this doesn’t work out then Michael Dell can always run for president!). To read the complete article, CLICK...

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EMC Shows Developers “The Way” to the Cloud

In technology, as in other fields, details count and meaning can sometimes hinge on a single letter. For example, being committed to a technology like open source is easy enough to understand, but becoming an open source “committer” is something else entirely. Why that’s the case and what it has to do with EMC’s new Cloud Foundry Dojo in Cambridge, Massachusetts is worth considering. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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