Dell Inc. and EMC Corp. on Wednesday completed what has been dubbed the biggest technology merger in history, joining two data providers and manufacturers of computing equipment into one $74 billion composition.
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Michael Dell, chairman and CEO of Dell Technologies, said that the deal had been made at a time when the world was at a pivotal moment, enjoying the early stages of the next industrial revolution thanks to digital transformation.
Dell’s merger with EMC also underscores the fluid nature of a storage sector as next-generation technologies like all-flash arrays along with object and scale-out storage platforms make inroads in enterprise datacenters. Like other established vendors, Dell and EMC have been trying to quickly adapt to the new business realities while continuing to expand their traditional product portfolios.
Analysts point out that, unlike other megamergers, Dell has a good chance to make good thanks to it being a private company unbuffeted by activist investors and quarterly targets, and therefore able to provide a stable environment to pace itself against long-term goals, rather than worrying all the time about quarterly reporting requirements (as perhaps others have done).
At least that is what Michael Dell, chairman and CEO of Dell Technologies, believes and he has put big bucks behind his bet.
After nearly a year of moving through the long process of regulatory approval, Dell and EMC formally reinvented themselves today with the launch of Dell Technologies.
The deal, announced October 12, took almost 11 months to complete.
Dell Technologies has a portfolio of more than 20,000 patents and applications. “Dell Technologies goes from the smallest client devices to the largest enterprise data centers globally and everything in between – a full turnkey enterprise solution offering”.
Dell has recorded losses for the last three years, dropping $1.1 billion in fiscal 2016 on revenue of $54.8 billion compared with a loss of $1.2 billion on revenue of $58.1 billion for fiscal 2015.
“We have the vision, the innovation, market position and horsepower to drea” big”, dell said adding that the future was going to “unleash a torrent of innovation”. Meanwhile, Dell, now armed with even more products, partners and tech talent will have to find ways to remain nimble as competitors look to take advantage during the transition period. The rest of the Dell Technologies-Pivotal, RSA, SecureWorks, Virtustream and VMware-will retain independent identities. David Goulden will be president of the infrastructure solutions group at Dell EMC.
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Dell Technologies’ Sweet dismissed those concerns, saying for now the merged company would continue to support all product families while considering its options down the line.
