This is just a quick post as I should be concentrating on VMworld right now, but (obviously) all everyone is talking about at the event is the momentous news that Dell are to acquire EMC for a record $67 Billion! There are so many possible implications from this event, so many questions which arise immediately and probably many more as the dust starts to settle. For example:
- Dell have a very strong relationship with Microsoft, not only providing large quantities of infrastructure into MS corporate and Azure, but collaborating closely on products like the Microsoft Azure Pack etc. How do MS feel about a key partner buying one of their biggest competitors (VMware) and how will they react?
- How many EMC and Dell products will be dead in the water within 6-12 months? If you are in the middle of your buying cycle right now, would you want to actually make a long term investment into either? This could be a great time for some of the other major players and startups to expand their market shares.
- What is the future of VMware? They are still technically independent, though 80% owned by EMC. Would Dell want to maintain that position, buy up the remaining stock, or perhaps even sell off VMware to pay off a good chunk of the EMC purchase price? The market certainly didn’t seem too impressed as the VMware stock price dropped over 10% after the deal become public!
- What will the likes of HP do now that their biggest competitor has just bought one of their biggest partners?
- Will the SEC approve the merger (I am certainly no expert on US financial law, but I assume they will have some sort of say over this due to the scale of the deal)?
- Maybe all of the above are moot, and everyone will continue to get along as Frenemies / Co-petitors (©2015 Jane Rimmer)… then again, maybe not?
People have been talking about Joe Tucci’s retirement for years now; I doubt anyone imagined it would end with this!