Oracle's Ellison: $67 Billion Dell-EMC Deal 'is Brilliant'

By Jeffrey Burt  |  Posted 2015-11-02 Print this article Print
Dell's $67 billion EMC purchase

What makes the Dell-EMC deal even more interesting is the contrast to HP's decision to address the changes in the tech industry by splitting the company in two. As of Nov. 1, there are now two new companies in the market—Hewlett Packard Enterprise (HPE), which focuses on enterprise technologies like servers, networking and the cloud, and HP Inc., which sells PCs and printers. The next couple of years will be a proving ground of sorts to determine which strategy works best.

HPE CEO Meg Whitman, after the Dell-EMC deal was first announced, said in a memo to employees that the debt and integration issues Dell will face will distract the company for the next couple of years, opening up opportunities for her new company to siphon off customers. Whitman said that "integrating EMC and Dell, which combined have more than $75 billion in revenue and nearly 200,000 employees, is no small feat. This will be a massive undertaking and an enormous distraction for employees and their management team as two very different cultures come together, leadership teams shift and an entirely new strategy is developed."

Michael Dell has argued that scale continues to be important for vendors, and that it is important for enterprise IT solutions and services providers to have all the pieces in one place, from PCs through the data center and cloud.

"We have a different viewpoint as to how our companies should evolve than HP does," he said during a press conference at Dell World, adding that "scale is important. … When you look at the industry, companies that have succeeded in the … data center space were attached to large PC businesses, client businesses, and volume actually matters."


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