The blogosphere is abuzz this morning with rumors of an impending Dell – EMC merger (see Wall Street Journal article here), with Dell seeming poised to acquire the much-larger EMC, likely using a mix of cash on hand and cash borrowed from investment bankers, hedge funds, and other sources.
On the surface, a Dell + EMC combination could make sense. EMC’s market-leading physical storage, storage management, security, virtualization technologies, et al, would all add great capabilities to the enterprise-first portfolio that Dell has been building and refining for years. They could also help provide improved capabilities for Dell’s increasing Cloud-first strategy – primarily for Private Clouds (mostly at the lower layers of Saugatuck’s EcoStack, but enabling more services in the middle and upper layers).
But there are some potentially large challenges in such a combination.
One is that EMC has not been able to leverage enough of its core technologies into Cloud-first solutions that can or do deliver the types of revenue needed to counter declining sales of traditional, on-premises solutions. While EMC has made great strides in evolving to software revenues, much of their software is for use in on-prem Continue reading Dell + EMC – Pluses and Minuses