Yesterday, after many worries—some regulatory (Would the EU sanction the deal? Would China sanction the deal?), some legal (Were the financial instruments being used to finance the deal unlawful under the US tax code?)—the biggest IT merger ever in terms of monetary value finally occurred. This is one of those landmark occasions. Two of the biggest names in our industry, Dell and EMC2, have merged to become Dell Technologies.
Articles Tagged with Virtustream
It has been an interesting time to be living in the IT world. The ripples and ructions caused by the Dell/EMC merger have quashed almost every other conversation. This is the biggest take-private merger transaction for a tech company ever, dwarfed only by the $106 billion Time Warner/AOL deal in 2006.
The announcements keep coming thick and fast from the behemoth that is EMC Federation, the seven-headed hydra beast. In a not too unexpected announcement, VMware is to pseudo–spin out its vCloud Air division and move it into Virtustream, the latest Federation member, which EMC bought earlier this year for $1.2 billion.
Dell is the future for EMC and, incidentally, for VMware. But how is this future going to be formed? Assuming the stockholders agree, the deal will go through. How will Dell ingest such a large organization with such a diverse product line that competes with Dell—not to mention VMware, which, while part of the Federation, is traded separately. Let us look at the landscape of EMC with regard to how Dell could create a powerhouse. What are the options available to it?
This post is a little indulgent. Ever since our first ever post in May of 2009, our equivalent of a “Hello World,” we have been privileged to have many companies as sponsors. It is this sponsorship that allows us to do the work that we do.
With the news that EMC has bought Virtustream (to be completed near the end of the year), the cloud landscape does not change very much in the short term; however, in the long term, the EMC family has its work cut out for it to integrate all its cloud solutions. The EMC family currently has three, if not more, cloud options available to its customers from VMware, EMC, and now Virtustream, and the last is handled quite differently. This will cause some issues if people want to move between the various clouds. Those issues including billing, management, and technology.