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Dell buying EMC

stevech

Part of the Furniture
BRUSSELS (Reuters) - Dell Inc [DI.UL], the world's third-biggest maker of computers, is set to gain unconditional EU antitrust approval for its $67 billion bid for data storage company EMC Corp, two people familiar with the matter said on Thursday.

Dell unveiled the deal in October last year, the largest ever in the technology industry sector, and designed to enable Dell to better challenge rivals Cisco Systems Inc, IBM and Hewlett-Packard in cloud computing, mobility and cyber security.

European Commission spokesman Ricardo Cardoso declined to comment on Thursday. The Commission is scheduled to give its ruling on the deal by Feb. 29.

Dell and EMC did not immediately respond to requests for comment.

EMC shares were trading up 0.68 percent at $25.15 in early trade.

Dell founder and Chief Executive Michael Dell took the company private three years ago with the help of private equity firm Silver Lake.

The computer maker has arranged a debt package for up to $49.5 billion to help finance the EMC deal, the second-largest M&A financing on record.
 

joegreat

Very Senior Member

stevech

Part of the Furniture
Last I read, the deal just got anti-trust OK from US Gov. and the deal hasn't been completed.

the news came to my email yesterday.

No matter. What is interesting is the continuum of consolidation (less competition).

And hopefully good prognosis for Dell to diversify.
 

htismaqe

Very Senior Member
It seems a little late. EMC is no longer the far-and-away leader in hardware and VMWare really isn't any longer the far-and-away leader in software. It seems like Dell is buying the Cadillac 4 years after the cheap knockoffs are already on the market.
 

sfx2000

Part of the Furniture
It seems a little late. EMC is no longer the far-and-away leader in hardware and VMWare really isn't any longer the far-and-away leader in software. It seems like Dell is buying the Cadillac 4 years after the cheap knockoffs are already on the market.
Somehow they see synergy in the product lines - Dell's enterprise grade Servers/Networking, along with EMC's storage solutions - there's a lot to be mined in $upport contract$...

Dell always had decent enough servers - even though my data center gear was always either HP, IBM, or Sun/Oracle from a server perspective, along with either their storage solutions or NetAPP filers... we had a fairly extensive VMWare ESX cloud, but lately it seems that they're shifting development direction away from that...
 

htismaqe

Very Senior Member
Yeah, there's a pre-existing relationship there since Dell has been selling the lower-end EMC storage arrays for like 15 years. I imagine the support relationships are key. I also imagine Dell may look to use VMWare to position itself against Microsoft and Oracle for bundling hardware and hypervisor/software.
 

sfx2000

Part of the Furniture
I also imagine Dell may look to use VMWare to position itself against Microsoft and Oracle for bundling hardware and hypervisor/software.
That, and perhaps defending themselves against HPE, RedHat, IBM, and all the unicorns out there in cloud space...
 

htismaqe

Very Senior Member
That, and perhaps defending themselves against HPE, RedHat, IBM, and all the unicorns out there in cloud space...
I think it will be important to see if they portray themselves as a provider OF the "cloud" or a provider TO the "cloud".
 

htismaqe

Very Senior Member
Considering what virtualization has done to the blade server market (at least in the high end enterprise and SP space), Dell should be doing quite well. I'm not sure they've been managed very effectively. This will definitely help them diversify. It just remains to be seen how they position themselves against their traditional rivals (ie. IBM and HP) when they don't have the consulting practices the competition does.
 

sfx2000

Part of the Furniture
Dell has been remarkably well run since they went private - better products and a better lineup across the different markets. The EMC buy does fill in some gaps, as Dell previously did not have a compelling storage solution...

The question at some point will be - What happens to VMWare? To date, they've been an autonomous business within EMC - will this continue, or will it be spun out or die from benign neglect now that FOSS components are getting to the same level of stability and performance.
 

stevech

Part of the Furniture
Well, Dell's revenue seems to remain hardardware-focused. IBM is shrinking into the services corner (sad). HP is self-destructing.
So Dell might have an easier time now.
 

RMerlin

Asuswrt-Merlin dev
Dell has been remarkably well run since they went private
The wonders of not having to satisfy a bunch of short-term minded cry-babies who care more about their IMMEDIATE return on investment than in the long term viability of a company...
 

L&LD

Part of the Furniture
The wonders of not having to satisfy a bunch of short-term minded cry-babies who care more about their IMMEDIATE return on investment than in the long term viability of a company...
Management by committee (aka how to run a company into the ground).
 

stevech

Part of the Furniture
In a public company, the CEO/CFO and staff have to placate the quarterly report interviewers in the brokerages - most of which are greenhorn new grads getting off on making these rent-a-CEOs squirm. Those conference calls are very "curious" to hear.
 

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