Dell's Acquisition of EMC Gets OK From European Regulators

By Jeffrey Burt  |  Posted 2016-02-29 Print this article Print
Dell EMC

In virtualization software, regulators acknowledged VMware's strong market position, but noted that there is increasing competition coming from such vendors as Citrix Systems, Microsoft and Red Hat as well as from new technologies, and that businesses normally use virtualization technologies from multiple providers.

In addition, VMware has always been a vendor-neutral company when it comes to hardware and software partners, and that in the server market, Dell's competitors will continue to work with VMware or other third-party virtualization software providers, the commissioners said. They also were comfortable with the deal regarding the emerging converged and hyper-converged infrastructure spaces, saying again that competitors had other virtualization options other than VMware.

In the months since the deal was announced, the issue of how Dell will treat VMware has been of particular concern in some corners of the industry. There reportedly has been worry that Dell might pull back on VMware's work with competitors, and that Dell may consider using some of VMware's profits to pay down Dell's debts. In a post on the company blog days after the deal was announced, Michael Dell sought to ease customer concerns.

"We intend for VMware to remain an independent public company," the CEO wrote. "Further, we believe it is very important to maintain VMware's successful business model supporting an open and independent ecosystem. We do not plan to do anything proprietary with VMware as regards Dell or EMC, nor place any limitations on VMware's ability to partner with any other company."



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