Dell has announced a staggering $67bn deal for EMC which could spark a major upheaval in the enterprise IT market as EMC effectively owns several other key companies, including VMware, Pivotal and RSA.
Dell founder Michael Dell explained that the acquisition gives the company a strong position in several more key enterprise markets.
“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 centres, converged infrastructure, hybrid cloud, mobile and security,” he said.
“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.”
EMC chief executive Joe Tucci described the deal as a major success for EMC given its origins as a Boston startup.
“The waves of change we now see in our industry are unprecedented, and to navigate this change we must create a new company for a new era," he said.
"I truly believe that EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders."
The deal is likely to cause a huge shake-up in the enterprise IT industry. Dell has been gradually transforming itself from being largely a supplier of PCs and servers to a one-stop shop for enterprise infrastructure and services with a global presence.
As part of this move, Dell has acquired numerous companies along the way, including storage vendors such as Compellent and EqualLogic, to build out its own capabilities in this area.
EMC is primarily an enterprise storage vendor, which means there will be some overlaps in product areas if it is bought by Dell and could lead to shake-out of product lines in the near future.
EMC is just one part of what the firm calls the EMC Federation, comprising EMC, VMware, security firm RSA and Pivotal, developer of the Cloud Foundry application platform, all of which EMC has control of or a major stake in.
Perhaps the most important part of the EMC Federation is VMware, which is one of the biggest vendors in the virtualisation and cloud computing markets, and it seems likely that VMware is the real target of an acquisition of EMC, as data centre infrastructure has been one of the areas in which Dell has been beefing up its offerings over the past couple of years.
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