by Adam Armstrong

Dell Completes EMC Acquisition To Become Dell Technologies

Today Dell Technologies completed its acquisition of EMC Corporation creating the world’s largest privately controlled tech company. Combined the companies create a $74 billion market leader with a wide breadth of products and solutions that cover a large portion of the industry including hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service (PaaS), data analytics, mobility, and cybersecurity. Dell Technologies now comprises of Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream, and VMware.

First announced in October of last year, the acquisition of EMC by Dell was stated as being worth $67 billion. Dell EMC will continue to focus on innovation and R&D while leveraging its global scale and service capabilities to deliver efficient and cost-effective solutions for its customers. Shareholders of EMC have receive $24.05 per share in cash in addition to tracking stock linked to a portion of EMC’s economic interest in the VMware business. VMware will continue to be a publically traded business for the time being. While Dell EMC will be a privately held company, it does plan on publically reporting its financial results.

The first group that comes to mind when thinking about the benefits this acquisition brings is the enterprise. Dell EMC is also addressing the midrange storage customers going forward with 100% commitment to both EMC Unity and Dell SC (Compellent) customers. For midrange, Dell EMC now represents 29.4% of the market share (over twice that of HPE and nearly double of NetApp), $3 billion in combined revenue, and now over 100,000 customers. Dell EMC plans on keeping both the Unity and SC product families separate as they both represent specific needs. Customers can expect the same level of support for the products they own and as the new company evolves they will be able to evolve with it migrating to new products as they become available.

While this acquisition marks a big change for Dell and EMC it also is rattling the industry as a whole. There are several competitors that are waiting with baited breath for this new giant to stumble as it attempts to bring the businesses together under one heading with a single mission. While there are most likely going to be a few bumps along the way, if there is no significant issues, Dell EMC will be a new competitor on the field to be reckoned with. It will also be interesting to see how this shakes out for technology partnerships Dell has currently. With EMC under its belt, Dell is less likely to see some of its partnerships with competitors as useful in the long term.

Dell EMC main site

Discuss This Story

Sign up for the StorageReview newsletter

Related News and Reviews