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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EMC Federation Announces… Hybrid Cloud Solutions

At VMworld, EMC previewed updates to its Federation Enterprise Hybrid Cloud solution and announced a new Federation End-User Computing solution. Both leverage integrated hardware, software and services from EMC Information Infrastructure (EMC II), VMware and VCE, are designed to unite the strengths of private and public cloud, and enable the self-service provisioning of applications and resources according to policy-driven service levels. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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VCE…: A Year of Evolution and Growth

Tech industry analyst events come in all sizes and shapes, from massive get-togethers aligned with general partner and customer conferences, such as EMC World and IBM Innovate, to sizable dedicated summits, like Dell’s Annual Analyst Conference. Just as it did in its first analyst event last year in San Diego, VCE’s Analyst Day last week in Chicago took a different approach; keeping it small (just 15 analysts), and emphasizing deep dive presentations by senior executives and in-depth discussions with company customers. The result was one of the best events I’ve attended in 2015, and while I can’t discuss material VCE shared under NDA, there are still many points and details worth close consideration. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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HP vs. VCE: The Contrast Is Striking

Last week was HP Discover and the VCE Analyst conference and given both were going on at the same time it was pretty hard to avoid the stark differences. Since Meg Whitman took over HP has fragmented badly and while they can still talk about converged solutions it’s pretty clear they are no longer structured to deliver them. Whitman has kind of become the Sarah Palin of CEOs, without the personality, in that she seems to increasingly have a habit of saying things that have folks scratching their heads wondering if the elevator goes to the top floor. VCE on the other hand is known for just getting the job done, in a world of companies who provide parts and limited instructions VCE is really the only firm that delivers turnkey solutions. The irony is that HP is closer to the norm, though on the far side of it, than VCE is. To read the complete article, CLICK HERE NOTE: This column was originally published in the Pund-IT...

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Can VCE’s VBlock Be An Agent of Change for IT?

Author Joseph Campbell once stated, “The virtues of the past are the vices of today”. IT server, storage, and network administrators who still cling to the old ways of managing infrastructure in discrete silos would do well to heed Campbell’s warning. Perhaps the single biggest challenge facing many IT organizations today isn’t shadow IT threats from Amazon, Google, or some other third provider of infrastructure services. It’s much more fundamental than that. The biggest challenge is getting IT organizations to change so that they can adapt to the new realities of an on-demand world. To read the complete article, CLICK...

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