![]() Though IBM and HP have retreated from that model, it can be good for customers on two levels, he said. Dell conducted a long campaign go private, which it finally did in 2013, and EMC has defended its unusual "federation" structure against demands that it sell off some divisions.Īcquiring EMC will give Dell a stronger claim to being the only IT vendor with a full set of products from the PC to the data center, said Pund-IT analyst Charles King. The alternatives are familiar names like IBM and Hewlett-Packard, while Cisco Systems, EMC and Oracle have also been shooting for big-time cloud deployments.īoth Dell and EMC have had to put time and energy into defining their businesses in recent years even as the enterprise IT industry has changed rapidly around them. It will take Dell's storage portfolio upmarket and help to resolve organizational issues vexing EMC.ĭell has spent years trying to make the leap from PCs and small and medium-sized businesses to a full set of components for large enterprises. ![]() The deal will combine the world's biggest enterprise storage vendor with one of the largest server makers, forming a company that can serve a broad range of enterprise needs. "As we move to hyperconverged prodcuts we can use more of the Dell technology, … but for the networking products we intend to stay with Cisco for the time being." In the case of VMware, those revenue synergies could involve substituting Dell networking products for those of Cisco Systems, VMware's current networking partner.īut, Gelsinger said, VMware expects to continue to work with Cisco on Vblocks and other VCI options. ![]() That's what this transaction is all about," he added. "The revenue synergies are three times as big as the cost synergies. + ANALYSIS: What Dell buying EMC means for VMWare +īut Dell plans to take a greater economic interest in VMware, buying back shares in it over time, Gelsinger said in a conference call with analysts on Monday morning.ĭell stands to benefit from a number of synergies with EMC, Tucci said: "It's pretty amazing how many companies Dell is the number one reseller for, and it's also amazing how many of those technologies our products can substitute for." VMware will continue to operate as an independent company under Pat Gelsinger.ĮMC CEO Joe Tucci, who will step down when the deal closes around the middle of next year, said he expected the company’s Pivotal subsidiary to be floated as a public company in the near term. Under the terms of the deal, EMC shareholders will receive cash and shares in a VMware tracking stock.
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