What Will Dell Do With EMC?

I would not have bet a lot that Dell would make a pass at EMC but it has apparently happened. The Wall Street Journal broke the story this morning that PC manufacturer and services provider Dell will be purchasing storage giant EMC for a reported $67 billion. Backed by private equity firm Silver Lake, the acquisition will leave Dell CEO, Michael Dell, as the head of a very large and powerful tech company.

What about VMWare?

At this precise moment, many of you MSPs may have let out a collective scream about what Dell would do with technology like VMWare, which is 80% owned by EMC. Well, worry not because apparently VMWare will remain a publicly traded company, leaving Dell as it currently stands, a privately held corporation.

Why Did Dell Do This?

I can only speculate why Dell would want to acquire a company like EMC. For many years, EMC (including its subsidiary company RSA), have struggled to find a place in a rapidly evolving world. Dell, on the other hand, has been eagerly buying up technology companies in an effort to evolve from its PC manufacturing roots into a services organization, led strongly by storage and security.