#DellEMC - CrowdChat

Dell's Mega EMC/VMware Deal

Dell's record-breaking $67B buyout of EMC will create a ~$75B enterprise tech giant...Let's discuss

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The merger agreement includes a 60-day 'go-shop' provision that allows EMC to solicit bids from other parties and pay a discounted breakup fee to Dell if a deal is made with another company, who else may try to make a bigger bid ? HP ? Cisco ?

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I think Cisco would be the obvious contender but Robbins has said he's not interested - of course that could change

Cisco already (except for 10%) divorced from VCE, but HP certainly was interested. Need to wait till they become HP Enterprise next month..

I think Cisco / EMC makes the best fit, if they can put aside their differences :) but not likely, unless EMC is willing to sell off specific product lines. Cisco needs a storage play and solidfire might be a fit, but EMC is a better fit.

unless Cisco changes their M&A stance from Chambers days, they would never make a large, bi-coastal acquisition.

@bgracely I agree, but I mostly see Cisco and EMC in larger datacenters. The EMC and Cisco combo would supply best of breed solutions across the entire datacenter... but #pipedream

Customers don't want to buy best of breed products anymore. They want best of breed integrated/engineered solutions. The days of customers being integrators are numbered. Cloud is clearly driving demand of integration.

@Phil_Dunn1 agreed! that's why I said "solutions" :)

Ian Gertler@IanGertler says @RobSteele @furrier re: Agreement includes 60-day 'go-shop' provision ... #dellemc > Not many that could compete w/ a $69 billion price tag.

Cisco would be a natural IMHO

Interesting datapoint - @michaeldell said that the revenue synergies are 3X greater than the cost synergies for this deal

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Cost synergies worth $1, revenue synergies $3

Finance guys over estimate the "move to the cloud"

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coming of #reinvent - AWS is running at a $7.3B rate growing at 80% per annum with a $1B+ storage biz - I can see why the bean counters are excited about cloud

True - But Dell's comment on SDC and SDS are important.

Analyst question about headcount reductions (i.e. layoffs) expertly dodged by Mr. Dell.

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there will be many layoffs

It only makes sense to get rid of overlaps

@furrier one would think - but the overlap in Dell and EMC businesses is relatively minor

Dell has added 2k new sales people. Yes, I expect shifts and some cuts, but there are opportunities.

Who will gain the most from this deal and who loses?

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IBM should gain in the short term new customers big time even HP possibly

I think EMC loses the most, feels like Walmart merging with Porshe

Keith Townsend - Light will overcome darkness

Pure has to be anxious to take advantage of the short-term loss of focus. I expect Nutanix to execute quickly on marketing.

Keith Townsend - Light will overcome darkness

HP has to be worried. Dell is getting EMC consulting while their dealing with the headache of HP ES.

I think #Oracle will be a big winner both short and long term during this chaos. Both Dell & EMC will be struggling with integrated market as they'll be integrating themselves. Look at what happened to Lenovo acquiring IBM x86 business.

@RobSteele I keep picturing that python which ate the porcupine...

scott brightwell

HP unnaturally quick to trash the deal. Me thinks she doth protest too much @CTOAdvisor

Keith Townsend - Light will overcome darkness

@scottbri no doubt HPE wants EMC. And we know HP isn't afraid of overpaying so I agree.

Dell/Silver Lake will be seeing if they can sell RSA and Pivotal....

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this begins the consolidation

Pivotal would be an interesting buy for Cisco, especially the Cloud Foundry portion, as a way to overlay Cloud Native apps on any cloud - which is the core of their Intercloud strategy

RSA maybe - not sure I agree w pivotal - some real SW assets there that could be valuable to Dell. And how much could Dell get for Pivotal? I would think Pivotal supports Dell's dev/ops push

Oracle trying to buy Pivotal would be an interesting move (thanks @cloud_opinion).

@cloud_opinion Buy Pivotal? Seriously? Why? Oracle doesn't need Pivotal as it offers better, more competitive products/solutions already.

But of course there are Pivotal customers I'm sure Oracle would like to have..

The industry is moving back towards the Thomas J. Watson prophesy about "demand for about 5 computers"; just replace computers with clouds (or vendors).

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Larry Carvalho0

Converged infrastructure + cloud = hybrid use case - interesting view of the emerging technology landscape

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I foresee the EMC storage fleet being treated as cash cows, with major thinning of the sailors, lowering of sailor grog rations, and little investment in the ships.

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So you see a focus on more server based / software defined solutions?

Stuart Miniman3

Tucci says that combined companies will have 3 major tech hubs - Boston, Austin and Silicon Valley. Hopkinton, MA business will start with $30B revenue. Those of us in MA are definitely concerned with local impact.

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This is part of the secret Texas plot to take over the world.