A blockbuster deal has been announced in the tech world. Dell is going to buy EMC for a staggering $67 billion. Why would Dell do this? The Globe And Mail has an explanation:
The acquisition will help privately held Dell diversify away from a stagnant personal-computer market and give it greater scale in the faster-growing and more lucrative market for managing and storing data for enterprises.
“Dell wants to become the old IBM Corp, a one-stop shop for corporate clients. That model fell apart a couple of decades ago. Reviving it would be a stunning coup for Dell,” said Erik Gordon, clinical assistant professor at the University of Michigan’s Ross School of Business.
Dell will get EMC’s enterprise storage as part of the deal which many companies who haven’t migrated to the “cloud” use. Plus it gets an interest in VMWare which is a company owned by EMC that makes virtualization software. You’ll excuse me if I seem skeptical if Dell can pull this off without finding some way to screw this up. After all Dell spent a pile of cash to go private and that was far from a painless process. But I guess time will tell if this is a win for Dell or wasted money.
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This entry was posted on October 12, 2015 at 9:13 am and is filed under Commentary with tags Dell, EMC. You can follow any responses to this entry through the RSS 2.0 feed.
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Dell To Buy EMC For $67 Billion
A blockbuster deal has been announced in the tech world. Dell is going to buy EMC for a staggering $67 billion. Why would Dell do this? The Globe And Mail has an explanation:
The acquisition will help privately held Dell diversify away from a stagnant personal-computer market and give it greater scale in the faster-growing and more lucrative market for managing and storing data for enterprises.
“Dell wants to become the old IBM Corp, a one-stop shop for corporate clients. That model fell apart a couple of decades ago. Reviving it would be a stunning coup for Dell,” said Erik Gordon, clinical assistant professor at the University of Michigan’s Ross School of Business.
Dell will get EMC’s enterprise storage as part of the deal which many companies who haven’t migrated to the “cloud” use. Plus it gets an interest in VMWare which is a company owned by EMC that makes virtualization software. You’ll excuse me if I seem skeptical if Dell can pull this off without finding some way to screw this up. After all Dell spent a pile of cash to go private and that was far from a painless process. But I guess time will tell if this is a win for Dell or wasted money.
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This entry was posted on October 12, 2015 at 9:13 am and is filed under Commentary with tags Dell, EMC. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.