Dell EMC deal great on the books but not for the cooks

Computer maker Dell stirred up quite a storm in the IT industry by snapping up storage juggernaut EMC for a whopping $67 billion. The mother of all deal will have a significant impact on the enterprise technology landscape in the years to come.

The India market at this point of time is opportune for a Dell-EMC deal to take place considering India is still a host to a large number of organisations who are yet to shift workloads to the cloud. The deal would put the merged entity in a sweet spot as it would be providing end-to-end infrastructure in terms of both devices and storage. And the CIO community in India is closely watching the movements on the Dell-EMC merger.

It’s important to note that it is a merger and the details of how it pans out are yet to be seen. Mergers are not the same as acquisitions and the outcomes can take longer in former.

With the deal size being large in nature, the financial implications will be felt throughout the company. “In order to sustain the cost of the merger, Dell can look at workforce cuts. India specifically has substantial workforce under Dell, the consolidation of offices might cause disruption, ” points out Sanchit Vir Gogia, Chief Analyst & CEO, Greyhound Research.

Gogia asserts that the deal will be great on the books but not for the cooks- the employees and customers.

It would benefit both Dell and EMC bolster their position in the market.

EMC Big Data analytics software would be a good addition to Dell’s portfolio of solutions. EMC’s Pivotal software would give Dell a good lead in complex cloud computing and data warehousing capabilities. EMC storage solution technology can help calibrate Dell’s existing offerings.

“While for Dell, storage has been a secondary business segment, it will benefit from EMC’s focused R&D on the same. EMC will bring on-board expertise to further boost Dell’s storage segment and build better consolidated offerings,” he states.

However, both companies face a certain amount of overlay in offerings when it comes to storage and servers. “Both Dell and EMC work with partners that are industry competitors such as Dell with Nutanix and EMC with VMware – these partners could be left in a tight spot on how to sell,” cautions Gogia.

Source: ET CIO

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