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[Not Spaceghost]

So Dell now owns VMware.

 

[Rosur]

Dell has 67bill damn

 

[massivekettle]

Can someone explain why exactly Dell would want to do this?

They will both benefit from each other's strengths in IT (Dell - servers, EMC - storage) and would create a one-stop shop for enterprise IT. Ultimately, it's a growth play, as both companies are currently struggling on a standalone basis (EMC would be nowhere without VMware, and Dell is suffering from the slowdown in the PC market which is why they are all about cost-cutting on that front).

 

[btrboyev]

Misconception of Dell almost failing. Going private had nothing to do with its business floundering. Dell has huge business with the corporate and education sector and they've branched of more into server and infrastructure hardware.

 

[Valentus]

that's crazy. Gotta be the biggest acquisition ever right?

not even in the top 10

 

[Skellig Gra]

Dude your getting a shit load of money.

 

[ReturnOfTheRAT]

I didn't know Dell had that much available. Don't fuck up VMWare, ok?

 

[Transistor]

not even in the top 10

I think it was described, at least by Engadget, as the largest technology based acquisition.

 

[Arc]

I think it was described, at least by Engadget, as the largest technology based acquisition.

Also almost all cash acquisition.

 

[DavionStriker]

Dude! You're getting an EMC!

 

[Apt101]

I didn't know Dell had that much available. Don't fuck up VMWare, ok?

Ugh, I forgot about their stake in VMware. *crosses fingers*

 

[Transistor]

Ugh, I forgot about their stake in VMware. *crosses fingers*

If anything, they might bring some sense to VMWare's confusing ass pricing models.

 

[Kickz]

Wow DELL is PACKING some serious money...

 

[neogaffer1]

so is their pc business dead or is it going to slowly disappear over time?

not even in the top 10

comcast/twc didn't go through

 

[t26]

Guess this will be the new highlight for the Michael Dell movie

https://www.youtube.com/watch?v=yeiI8cd5rO4

 

[massivekettle]

Also almost all cash acquisition.

Not really. It's 60-75% financed by new debt. The remainder is a mix of cash and stock.

 

[Transistor]

comcast/twc didn't go through

Thank jesus for that. Monopoly of the century right there

 

[Apt101]

If anything, they might bring some sense to VMWare's confusing ass pricing models.

This is true. Between Microsoft and VMware we've had to build dedicated clusters within our VMware datacenter just to house some specific server roles (DB related).

 

[Heigic]

so is their pc business dead or is it going to slowly disappear over time?

comcast/twc didn't go through

They will slowly stop manufacturing PCs that can already be seen as they are reselling Surface. I dobut they made much profit on the hardware anyway.

 

[diehard]

VMWare is down 11%

I figure this is somewhat a panic move so i bought a good amount of shares.

 

[jstripes]

Can someone explain why exactly Dell would want to do this?

Because the PC business in the US is inevitably going to become unprofitable, and they need to diversify to secure their future. Enterprise services are a good way to secure that.

 

[Allard]

Because the PC business in the US is inevitably going to become unprofitable, and they need to diversify to secure their future. Enterprise services are a good way to secure that.

I actually went to a Dell conference this year and this is exactly what they said (not the PC part but the route they want to go as a company) they want to be the one stop for enterprise IT and work on building more customized and personal experience for people who work in a variety of environments but as those companies grow they can have a stable platform to expand from.

 

[Jezbollah]

Dell has 67bill damn

They dont. Most of the cost of the figure is now saddled on them in debt.

 

[quickwhips]

Its crazy my work deals mostly with Dell and EMC2 so now its just Dell. Crazy.

 

[Angry Grimace]

I have no idea what EMC is actually. Sounds like IT security stuff?

 

[Ultratech]

I have no idea what EMC is actually. Sounds like IT security stuff?

Mostly data storage, but they have a ton of other stuff as mentioned previously.

I've only been familiar with them (prior to this deal) with their Avamar software.

(You'd think Dell would use some of that money to build some better computers without glaring flaws for each model.)

 

[Lovely Salsa]

Thinking about it.....its pretty crazy to think that bill gates alone could've bought it without any problems

 

[evil solrac v3.0]

poor EMC customers getting Dell's shitty service

Weird; I've always had great service from Dell when I called.

US based operators and quick turnaround for any issues I've had (e.g. power brick DOA, missing OS disks, etc.).

But then again, I always buy through their business channels.



Yeah, same here.

same here as well. both for business and consumer. super fast, they gave me exactly what I needed and they were knowledgeable. I miss their XPS gaming desktops.

 

[CountAntonius]

Dude, you're getting $67,000,000,000.

 

[Kaako]

Damn, $67 bill huh...didn't know Dell could go in like this.

 

[captive]

It will be interesting to see if they can pull this off. But Dell, EMC and VMware are all losing ground. People want simpler data centers not more complicated ones.

EMC is much more than data storage. EMC owns VMware, which is still the defacto standard for virtualization.

not really, more and more people are switching to Hyper-V, AWS, Azure and KVM.