Dell, EMC Deal: 10 Things IT Needs To Know - InformationWeek

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10/13/2015
07:06 AM
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Dell, EMC Deal: 10 Things IT Needs To Know

Enterprise IT executives were left wondering what the massive Dell-EMC deal might mean to them. There's a lot you'll want to know (especially if you're an EMC customer). As we ponder the implications of the massive merger, what springs to mind are 10 ways we expect the deal to impact IT.
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(Image: EMC Corporation via Flickr)

(Image: EMC Corporation via Flickr)

Dell announced its plans to buy EMC Corp. on Oct. 12 for $67 billion in what's being called the largest "pure tech" acquisition in history. It's also the largest acquisition involving a tech company since AOL's  ill-fated $160 billion purchase of Time Warner, which closed in 2001.

As the Dell-EMC news sent the financial press into a frenzy of analysis on Monday, enterprise IT executives were left wondering what the massive deal might mean to them. There are a lot of things you'll want to know (especially if you're an EMC customer).

For starters, the deal encompasses nearly every aspect of enterprise IT you can imagine, including storage, cloud services, virtualization, security, and system management. It's also poised to reframe the IT vendor landscape for years to come. As we ponder the implications of the massive merger, what springs to mind are 10 ways we expect the deal to impact IT.

[Check out these 10 emerging trends that are changing IT.]

Some of the items on this list have to do with the sheer scope of the deal. Others concern the possibility of synergy (yes, I hate the word, too) between business units at EMC and those at Dell. Then there are a couple that fall into the, "Oh, yeah -- they own that" category of lessons. All of them, though, are factors that could have an impact on your IT operation in the coming years.

At this point, it's worth remembering that the sale isn't a done deal. US regulators could put the kibosh on everything, or another company could swoop in to offer even more stock and cash for EMC. The odds are pretty darned good, though, that EMC will be a Dell company before too long.

Did the announcement catch you by surprise? Do you think it's going to have an impact on your IT operation? Let us know -- and let us know if there are critical factors that we managed to leave off this list. This deal is going to keep people in the industry talking for a long time to come, so we might as well start the conversation now. After you've reviewed our list, let's meet up in the comments section below and discuss.

Curtis Franklin Jr. is Senior Editor at Dark Reading. In this role he focuses on product and technology coverage for the publication. In addition he works on audio and video programming for Dark Reading and contributes to activities at Interop ITX, Black Hat, INsecurity, and ... View Full Bio

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kstaron
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kstaron,
User Rank: Ninja
10/23/2015 | 9:55:59 AM
Working out company culture
If Dell and EMC can get together on the culture thing, they may have a shot. I've heard way too many horror stories about recently bought companies with managers that can no longer make their own decisions and instead have to go through an office located in another city for simple decisions better delegated to local offices like vacation requests, office supply procurement, and so on. When a manager can't manage, the people under them get disgruntled and either their productivity goes down or they jump ship for saner waters. If they can get past the madness reorganizing and putting new roles in place, maybe they will be come a force to be reckoned with.
gnxman
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gnxman,
User Rank: Guru
10/16/2015 | 5:40:06 PM
Re: Pending Review
This may turn out to be another HP-Digital disaster. Did you note what the interest costs are going to be per year? And thats before the rates go up. Getting huge-r isn't always the answer.
Martin1234
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Martin1234,
User Rank: Apprentice
10/13/2015 | 5:31:20 PM
Commodity buys Enterprise
Histrory repeats: decades ago Compaq decided to move up the value chain by buying Digital Equipment. Now DELL buys EMC. This will become an interesting journey. DELL surely has the capability inhouse now to become a cloud infrastructure powerhouse. However, it will be a risky road with respect to the very diifferent cultures, overlapping product and service lines to be integrated along the way. Nowadays the the real value is derived from speeding up the "concept to cash", the software production process and leveraging Continuous Delivery, DevOps, Microservices and Container Based platform technologies. It will be interesting to see how the DELL company will be able to inspire the minds and hearts of the modern developers beyond the infrastructure level.
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