Dell Pays $67 Billion for EMC
Dell has announced that it is buying the storage and enterprise technology giant EMC. The $67 billion price tag is considered the largest tech purchase in history. According to the press announcement, “The combination of Dell and EMC will create the world’s largest privately controlled, integrated technology company …. The transaction combines two of the world’s greatest technology franchises with leadership positions in servers, storage, virtualization and PCs, and it brings together strong capabilities in the fastest growing areas of the industry, including digital transformation, software-defined data center, hybrid cloud, converged infrastructure, mobile, and security.”
Dell got its start selling home and small office PCs, but hardware vendors have known for years the real money is in corporate contracts with enterprise clients. The company has succeeded in bringing itself into the enterprise space, but it is behind some of its larger competitors in recent technologies such as virtualization, private cloud, and Big-Data-style storage solutions. This deal should keep them in the conversation with competitors such as Microsoft, Oracle, IBM, and HP.
Some experts, however, are baffled by the announcement and warning of risks associated with combining two such large and disconnected companies. The biggest prize in the EMC portfolio is the popular VMware virtualization solution and its surrounding technologies. VMware will fit well into the pitch Dell needs to make with large enterprise clients.
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Heisenberg's Uncertainty Principle states that you can know either the velocity or the direction of an electron, but not both at the same time – at least not in a precise way, you can't. The Hess Uncertainty Principle states that you can't know (precisely) both the speed and the direction of computing. I thought of this during my recent trip to Austin, Texas, where I attended Dell World 2014. Dell turned 30 years old this year, and I never would have predicted, with any accuracy, the new direction that Dell has taken. Nor would I have predicted its current velocity. How could I have known both simultaneously? The short answer is that I couldn't. I'm not even sure that Michael Dell could have predicted, as little as five years ago, the speed and the direction of his company today.
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