Dell Buys EMC For $67B

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It looks as though the rumors were true, Dell has bought EMC for $67 billion. While this isn't Time Warner - AOL huge, they are calling this the "biggest tech deal of all time."

In the biggest tech deal of all time, Dell announced Monday that it has agreed to buy corporate software, storage and security giant EMC for $67 billion. The deal completes Dell's transformation from a consumer PC business to an IT solutions provider for companies. That process began when Dell bought Perot Systems for $4 billion in 2009 and went full throttle in 2013 when company founder Michael Dell took the business private.
 
No shock here. Seems to align well with Dell's efforts to expand into services and lessen it's dependency on PCs. A big chunk of change though. Since they're private now we'll not really know if this was a cost effective strategy.
 
Facebook
Market Value: $245 billion
2014 Revenue: $12 billion

EMC
Market Value: $67 billion
2014 Revenue: $24 billion

He got it for a steal!
 
B00nie said:
Let's see if this is the end of Dell.
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I think you got it backwards.


cyclone3d said:
How long till EMC turns to a pile of poo?
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I was thinking this earlier. You can also lump VMWare into this because EMC owns majority stake in VMWare. It'll take about 4 to 5 years before any real change takes place. It'll be interesting to see what products get chopped and which ones make it.
 
I think the arrays will be good for a good long while after the buy out... but moving to Dell support is gonna suck BALLLLLLLLLSSSS.
 
rewted said:
I think the arrays will be good for a good long while after the buy out... but moving to Dell support is gonna suck BALLLLLLLLLSSSS.
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Not for the business level support. Not really sure where you have been but, I seem to have no issues getting Dell to cover a warranty item and ship a part overnight. Guess you are expecting World Class support on your Dell Venue 8?
 
If CISCO or HP don't come over the top (EMC has asked for a provision to allow them to field other offers) then I see Dell (now burdened with a ton of debt) selling off a considerable stake in VMWare to pay down debt.
 
It's also interesting the things Dell thinks it can pull off given their private equity backers.
 
rewted said:
I think the arrays will be good for a good long while after the buy out... but moving to Dell support is gonna suck BALLLLLLLLLSSSS.
Click to expand...

Dell business support (Equalogic, poweredge, AppAssure) is excellent. I have used them dozens of times a year and have never had to doubt their abilities or handling of a ticket.
 
Dell is going to pay dearly for that ~$50 billion of debt. With their current bond rating, I wouldn't be surprised if they end up with 6.5%-7% interest payments on the financing. That's going to eat up a good $3 million of their cash flow every year. EMC's cash flow has been on the order of $4 million per year, so that seems like a pretty big gamble on a market that isn't as robust as it used to be.
 
westrock2000 said:
Facebook
Market Value: $245 billion
2014 Revenue: $12 billion

EMC
Market Value: $67 billion
2014 Revenue: $24 billion

He got it for a steal!
Click to expand...

LoL... This message me laugh. Tech sector evaluation & speculation do seem to mean the same thing...

On the surface it does look like a good deal for both parties though.
 
Didn't know Dell was still relevant and had money to acquire someone like EMC. Thought they went the way of AST, Gateway, etc.
 
They, Dell, don't have the cash on their own. Silver Lake partners (Private Equity) is one of the many partners financing this deal.
 
mi7chy said:
Didn't know Dell was still relevant and had money to acquire someone like EMC. Thought they went the way of AST, Gateway, etc.
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Dell deals more with business solutions now than the consumer market. I seen quite a few companies with all dell systems on desks and their logo on some of the network appliances.
 
mi7chy said:
Didn't know Dell was still relevant and had money to acquire someone like EMC. Thought they went the way of AST, Gateway, etc.
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Dell or Apple and maybe Samsung is pretty much the only prebuilt pc/laptops I would buy. Lenovo is doing sketchy stuff with their software (that reinstalls on reformat), hp sucks all around, I have yet to see them make anything compelling that actually competes. Asus doesn't do software updates after the product is released unless you are lucky. Acer and toshiba are bargain brands.

rewted said:
I think the arrays will be good for a good long while after the buy out... but moving to Dell support is gonna suck BALLLLLLLLLSSSS.
Click to expand...

There business support is quite excellent. Where I used to work I did inhouse tech support. I would just call dell, tell them the hard drive is dead, they would over night me a new one all with in about 5-10min of being on the phone, most of that time giving details where to ship the device and how to return the old one.
 
mi7chy said:
Didn't know Dell was still relevant and had money to acquire someone like EMC. Thought they went the way of AST, Gateway, etc.
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Erm...Dell is still massive and very relevant in the business enterprise sector. They are far more diversified than the companies you listed ever were.
 
munkle said:
Dell or Apple and maybe Samsung is pretty much the only prebuilt pc/laptops I would buy. Lenovo is doing sketchy stuff with their software (that reinstalls on reformat), hp sucks all around, I have yet to see them make anything compelling that actually competes. Asus doesn't do software updates after the product is released unless you are lucky. Acer and toshiba are bargain brands.
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I see enterprises shifting from buying Dell to buying HP. Personally, I'd only buy Microsoft or Lenovo business class Thinkpad and clean install Windows anyway. It's the Lenovo consumer line that afflicted with crap like Superfish.
 
rewted said:
I think the arrays will be good for a good long while after the buy out... but moving to Dell support is gonna suck BALLLLLLLLLSSSS.
Click to expand...

Deal lord.. I forgot about that.

ManofGod said:
Not for the business level support. Not really sure where you have been but, I seem to have no issues getting Dell to cover a warranty item and ship a part overnight. Guess you are expecting World Class support on your Dell Venue 8?
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Dell used to sell rebranded EMC gear, internally it was called Dell Black support. It was awful to deal with it and that is an understatement. Renewals were always a train wreck.
 
rewted said:
I think the arrays will be good for a good long while after the buy out... but moving to Dell support is gonna suck BALLLLLLLLLSSSS.
Click to expand...

Eh? They are fine, and their enterprise support is based in the US. Send DSET, they log it, they send part next day sometimes within 2 hours depending on your contract. I can't say I've encountered anything worth bitching about with them. As for Netapp and Dell desktop support that's an entirely different story
 
About 15 years ago Dell and EMC were in bead together but that relationship went sour. Hopefully this will change that since I could use some Dell/EMC CX500 parts. Anyway, HP bought 3PAR a while back so Dell need EMC to even the playing field.
 
So what happens to vBlock? Is the Cisco UCS/Nexus part is going to be replaced by Dell/Force10 taking the entire stack in-house?
 
I wonder if something similar will happen with NetApp soon. I work on their support side and there's been a lot of changes recently.
 
munkle said:
There business support is quite excellent. Where I used to work I did inhouse tech support. I would just call dell, tell them the hard drive is dead, they would over night me a new one all with in about 5-10min of being on the phone, most of that time giving details where to ship the device and how to return the old one.
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People seem to complain about Dell support, but I've generally had good luck. They either ship the part next day, or have someone come out to fix the computer the next day. Maybe it's because I buy the business line (OptiPlex/Latitude/PowerEdge) and the 3 year on site warranty.
After the warranty is up, I redeploy the systems to in house users, making sure to keep a couple spares around just in case.
I usually find the Dells become obsolete before they die. I have 8 year old laptops that still work fine, they even run Windows 10 64 bit, but nobody wants to use them because they are too big/bulky.
Last year I started to retire some of the older servers, because I can now replace them with a VM using a couple virtual CPU's on one of the newer servers. Makes for a simpler computer room, and lowers the amount of power we use.
 
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