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October 13, 2015

Dell, EMC Announce Major Merger

Transaction Worth $67 Billion Brings Companies Together

Courtesy of Dell Inc. — Dell’s building in Austin, Texas.

A $67-billion transaction is being called the largest technology deal in history.

EMC_tag_294The transaction sees Dell purchasing data storage company EMC, creating the world’s largest privately-controlled, integrated technology company. The combining of the two companies means there will now be one company leading the information technology market with expertise in servers, storage, virtualization and PCs.

In a company press release, Dell CEO Michael Dell said the merger creates an “enterprise solutions powerhouse” with customers in mind.

“Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,” stated Dell. “Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes.”

Yet, despite all the hype and excitement news of the merger created Monday, some seemed to feel the acquisition was a minor step in technology. Computer World noted EMC and Dell have had a strong relationship for years with EMC already garnering nearly 10 percent of its annual revenue from its work with Dell.

Glenn O’Donnell, vice-president research director for market analysts Forrester Research, told The Guardian the move was a smart one considering the long-term financial impact for Dell.

“They’ll be getting an absolutely enormous cash flow stream with EMC,” O’Donnell said. “The core cash flow stream is declining but it’s still huge. That’s a really bad thing for a publicly traded company, but it’s a darn good thing for a private one.”


W. Brice McVicar is a staff writer for SiteProNews.