In response to the rise of mobile productivity, most technology companies are focusing on upping their strategies to drive mobile into enterprise, while Dell has bucked the trend by acquiring data storage company, EMC. In what is the largest deal in the history of the tech industry, Dell is paying $67 billion for the company.
EMC is a data storage, security, virtualisation, analytics, cloud computing company, regarded as the world’s largest provider of data storage systems. By acquiring EMC, Dell should become one of the largest providers of enterprise computing products, creating the largest privately-controlled, integrated technology company in the World.
The deal, led by Dell, MSD partners and Silver Lake will help Dell to combine its strength with small and mid-market businesses, with EMC’s focus on large enterprise. Dell went private last year, in order to restructure without pressure from investors and has continued its strategy of selling directly to customers, rather than using third party resellers.
According to Michael Dell, “The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment. 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.”
In many ways, it seems that the acquisition was a reaction to the huge changes that have been taking place with enterprise IT over the past few years, with the rise of cloud, big data and mobile.
Joe Tucci, chairman and chief executive officer of EMC said, “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. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”
Much of the deal appears to be focused at backoffice IT, to help deliver better backend systems and services. Though the deal is yet to be finalised, it demonstrates how much importance is being put into IT transformation at the moment. We’ll be fascinated to see how it plays out and how the deal will impact the enterprise market when the two companies eventually combine.