The EMC-Dell merger is definitely happening – and here’s what that means
For months, there have been whispers and speculation about the potential acquisition of EMC Corp. by technology giant Dell Inc. Since the tail end of 2015, industry experts have been predicting what the merger will mean not only for these organizations, but for the businesses that use their solutions.
In the face of slumping stock and a potentially huge tax bill, EMC leaders are defending the merger. EMC Lead Director William Green noted that "unless an act of God happens," the acquisition will remain on track.
Predictions for good
Green elaborated on his view, acknowledging that while some may be hesitant about the merger, he thinks it will pay off in the end.
"The two companies complete each other."
"I do think there are people who just don't get it yet," Green said, according to the Silicon Valley Business Journal. "[B]ut as more people spend time on it they will see and understand why this is great for investors."
Green isn't the only one in EMC's camp with this point of view. CEO Joe Tucci, borrowing a line from Tom Cruise in "Jerry Maguire," noted that the two companies complete each other. If all goes according to plan, sales staff from both sides will attract new customers while simultaneously selling Dell and EMC solutions to existing clients. The combined this team of 38,000 sales agents that will make the merger work for both organizations.
"That is part of the reason why this kind of merger makes sense now," Tucci said.
Consolidation on the horizon?
However, not everyone is as optimistic as EMC execs, particularly when it comes to the combined offerings of the companies. The Register contributor Simon Sharwood predicted "massive, bloody consolidation," especially in the areas where Dell and EMC solutions overlap.
For what it's worth, though, spokespeople from both businesses told Sharwood that they "don't comment on rumors."
Even if this kind of consolidation does take place, the process would surely be successful in the hands of these tech providers. Both have proven solutions for a range of pivotal enterprise needs. In this way, consolidation would likely involve taking the best from both sides to create the most beneficial tech solutions possible.
Biggest and best
Despite some of the negative buzz, Dell executives appear to be just as optimistic as EMC. Dell founder Michael Dell told ZDNet late last year that with this acquisition, Dell will become the largest "privately-controlled, integrated technology company" across the globe. In addition, the merger will only help bolster the organization's position "as a leader in the IT of tomorrow."
Dell is even looking on the bright side when it comes to possible consolidation, echoing Tucci's sentiments about complementing each other.
"There are some overlaps but what our product storage lines are trying to do and what EMC are trying to do is somewhat different," Dell said. "EMC has probably seven or so main product lines. We have one or two main product lines. Going from seven to nine is no problem at all."<< Back to Resources