Dell Wraps $60 Billion EMC Buy, Promises to be ‘Nimble’
**Editor’s Note: Please click here for a recap of the biggest channel-impacting mergers in May-June 2016.**
Bucking the trend to streamline operations like most of its competitors, Dell Technologies on Wednesday became the world’s largest privately controlled technology company — reaching the finish line in its $60 billion merger with EMC.
The new entity, with $74 billion in revenue, is a family of businesses that include Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware. It is open for business to help customers with digital transformation, including all of the building blocks of modern IT, said company leaders.
Addressing industry analysts and media, company executives Michael Dell, chairman and CEO; Tom Sweet, chief financial officer; and David Goulden, president of Dell EMC Infrastructure Solutions Group; discussed their vision and talked about financials — but didn’t have much to say about the role of the channel ecosystem in the newly formed company.
“In our go-to-market, our new company has strong capabilities and the furthest reach with more direct customers and a more powerful channel than any other technology company anywhere,” Dell said.{ad}
The go-to-market for the combined business will focus on three primary market segments: enterprise; commercial; and consumer and small business.
The company’s core businesses are: client solutions – represented by the Dell brand including hardware, endpoint security and peripherals; infrastructure solutions – falling under the Dell EMC brand, this combines the EMC Information Infrastructure business and Dell’s Enterprise Solutions Group to create the Infrastructure Solutions Group (which includes RSA and Virtustream); and Dell EMC Services for both customers and partners. Dell EMC Services is a global organization with more than 60,000 Dell EMC and partner service experts in more than 165 countries.
Pivotal, SecureWorks and VMware are referred to as strategically aligned businesses. These three are defined as standalone businesses — publicly traded or have outside investors.
“We’re aligning our capabilities where it makes sense to deliver integrated solutions in areas like hybrid cloud and security and seamless technology infrastructure from the edge to the core to the cloud,” Dell said. “But we’re not just content to have powerful solutions; we always want to be No. 1,” he added.
Dell pointed to the company’s leading positions in PCs, servers, storage, virtualization, and security, converged and hyperconverged infrastructure and platform as a service (PaaS).
He also noted that the new company will have $4.5 billion in annual research and development (R&D) spending.
