Hu Yoshida

The Rumors are true: Dell to buy EMC!

Blog Post created by Hu Yoshida Employee on Oct 13, 2015

The Wall Street Journal reported Monday that Dell will buy EMC for $67 Billion. Instead of giving in to pressure by EMC investors to split up the company to produce more returns, EMC has chosen to be acquired by Dell, which is better known as a PC company. While EMC storage can complement Dell’s servers, some analysts have pointed out that Dell and EMC are both pure play IT companies, joining together to make a larger pure play IT company.


Hitachi Data Systems has a complete IT portfolio, including servers and storage, but is not a pure play IT company. Hitachi Data System’s Social Innovation strategy combines Information Technology with Operation Technology to address the Internet of Things. Leveraging the industrial expertise of our parent company Hitachi ltd, and acquisition of companies like Pantascene, Avrio, oXya and Pentaho, Hitachi Data Systems is clearly focused on extending our capabilities in cloud, Big Data and IoT.


If EMC stockholders approve the deal, EMC will no longer exist as a public company. VMware will remain public and part of the deal will be issuance of a tracking stock in VMware, which makes up a large part of EMC’s current value.



Now that a server company may own EMC, what does that mean for companies that buy EMC storage and attach them with IBM, HP, or Cisco Servers? What does this mean for VCE, a converged system that was once a joint venture between Cisco and EMC with additional investments by Intel and VMware and is now 90% owned by EMC?  What about storage products that are owned by Dell and storage vendors that are partnered with Dell? Will there be layoffs, restructuring? Will parts of EMC, like VMware, be sold off to help finance the debt that will result from this deal? Will parts of Dell, like Compellent, be sold off for the same reason?


There will be a lot of questions that need to be answered. This comes in the fourth quarter, at the close of the fiscal year for many companies, when EMC makes their annual push for revenue.


This will certainly have a major impact on the enterprise IT market, in terms of relationships, product ownership, market share and value to investors, but nothing new in terms of technology or business solutions.