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Dell delivers on industry-defining EMC merger

James Henderson | Sept. 8, 2016
Dell Technologies becomes the world’s largest privately-controlled tech company.

Michael Dell - chairman and CEO, Dell Technologies
Michael Dell - chairman and CEO, Dell Technologies

Dell has completed the acquisition of EMC, creating the world's largest privately-controlled tech company.

Under the moniker of Dell Technologies, the combined company comprises of Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware, operating as a $US74 billion market leader.

Spanning hybrid cloud, software-defined data centre, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity, Dell Technologies now serves 98 per cent of the Fortune 500 across the world.

"We are at the dawn of the next industrial revolution," Dell Technologies chairman and CEO, Michael Dell, said.

"Our world is becoming more intelligent and more connected by the minute, and ultimately will become intertwined with a vast Internet of Things, paving the way for our customers to do incredible things.

"This is why we created Dell Technologies. We have the products, services, talent and global scale to be a catalyst for change and guide customers, large and small, on their digital journey."

Building a tech behemoth

For Michael Dell, Dell Technologies blends Dell's go-to-market strength in small business and mid-market with EMC's strength in large enterprise, combining to create a market leader across the world's $US2 trillion information technology market.

Together, Dell Technologies boasts a global footprint across 180 countries, with 140,000 team members and a combined sales force of over 40,000, including more than 30,000 full-time customer service and support employees, alongside over 1,800 service centres supported by more than 10 repair facilities globally.

In housing 25 manufacturing locations worldwide, the new-look vendor also owns more than 40 distribution and configuration centres and 910 parts distribution centres globally. 

With over 20,000 partners and patent applications combined, cumulative investments by Dell and EMC in research and development (R&D) have totalled $US12.7 billion, with plans to invest $US4.5 billion in the year ahead.

As reported by ARN , the birth of Dell Technologies creates a defining week for the channel, we partners evaluate the pros and cons of the world's largest technology merger.

As one analyst put it, Dell's purchase of EMC makes it like the General Motors of IT, with "requisite broad and deep product coverage and all the challenges of providing complementary service".

In truth, the acquisition runs against recent trends toward exiting product businesses or disaggregation, where HP and Symantec broke up and IBM sold off numerous businesses.

Yet time will tell whether the combination of Dell and EMC leadership, products, sales and go to market will provide new value to end customers, with the next 12 months set to dictate the relative success of the Dell-EMC venture.

From a customer perspective however, end-users are expected to take the Dell and EMC tie-up in stride.


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