HPCWire reports that Dell is purchasing storage, security, virtualization, and cloud computing provider EMC Corporation for $67 billion:
Dell will buy the storage provider EMC (NYSE: EMC) in a deal worth about $67 billion, reports The New York Times today (Dell Announces Purchase of EMC for $67 Billion). Dell and the investment firm Silver Lake, its financial backer, are betting that a huge acquisition will help one of the best-known names in the industry keep up with the rapidly changing technology industry.
"Under the terms of the deal, Dell will pay $33.15 per EMC share, which includes cash plus tracking stock linked to part of EMC's economic interest in VMware, a publicly traded business. The Dell founder and chief executive, Michael S. Dell will lead the combined company as chairman and chief executive.
"For the last two years, since taking the company private, Mr. Dell and Silver Lake have been trying to help it adapt to a changed tech landscape. Buying EMC brings Dell one of the biggest names in computer data storage, adding to existing offerings like network servers, corporate software and mobile devices," according to the NYT report.
Addison Snell, CEO of analyst firm Intersect360 Research said, "With the number-one market share company for HPC servers purchasing the number-one market share company for HPC storage, of course this deal has ramification for HPC users. For Dell it is a chance to drive an end-to-end high-performance data strategy, which has been an area they have sought to improve. For EMC, it is a chance to consolidate separate lines into a cohesive high-performance strategy — right now, Isilon and XtremIO are isolated businesses. And with virtualization now on the rise in HPC environments, Dell will want to see if VMware can be a valuable component."
CNN characterizes it as the "biggest tech deal of all time".
Additional thoughts from El Reg are not all unicorns and sunshine.
(Score: 0, Funny) by Anonymous Coward on Monday October 12 2015, @10:16PM
HPC and VMWare? Hahaha.
(Score: 2) by davester666 on Tuesday October 13 2015, @07:17AM
Three years from now, there will be a $60 billion dollar writedown of this "asset".
(Score: -1, Redundant) by Anonymous Coward on Monday October 12 2015, @10:31PM
Three years ago. Was.
(Score: 2, Interesting) by Freeman on Monday October 12 2015, @10:54PM
And what do you use for your Virtual Servers? I know our IT department has been using VMware for years and will be using it for the forseeable future.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
(Score: 1, Informative) by Anonymous Coward on Monday October 12 2015, @11:39PM
Different AC here, but we use a mixture of Virtualbox, Hyper-V, Xen, KVM, and another that escapes me.
On a related note, if the servers don't have to be secure and actually separated all the way down, then jails and containers are becoming more popular.
(Score: 0) by Anonymous Coward on Tuesday October 13 2015, @09:38PM
I believe that vmware ( when setup according to mandates ) is DoD compliant. Who else is? Anyone?
(Score: 1, Insightful) by Anonymous Coward on Monday October 12 2015, @11:29PM
And the bankers are pumping this shit up for another massive Dot Bomb. Should be an even more massive bloodbath.
(Score: 0) by Anonymous Coward on Tuesday October 13 2015, @09:34PM
I have smelled an implosion for a couple of years now, this will hasten it.
(Score: 0, Troll) by Gaaark on Monday October 12 2015, @11:31PM
Bubbles? Is that you??
https://www.google.com/search?q=bubbles+trailer+park+boys+pics&biw=1220&bih=636&tbm=isch&tbo=u&source=univ&sa=X&ved=0CDQQ7AlqFQoTCIaHro2LvsgCFQlZGgodIz4Hsg [google.com]
--- Please remind me if I haven't been civil to you: I'm channeling MDC. ---Gaaark 2.0 ---
(Score: 2) by Whoever on Tuesday October 13 2015, @03:04AM
This is yet another symptom of wealth inequality. A bunch of already wealthy people are able to buy a huge company and take it out of public ownership. Of course, banks are involved (complicit?) here, since this is a highly leveraged buyout. If this goes pear-shaped, who will pick up the bill?
(Score: 2) by captain normal on Tuesday October 13 2015, @05:51AM
Almost hard to tell just who the big sharks are. Seems to me Michael Dell has jumped the shark. All I know is shark meat tastes good.
Everyone is entitled to his own opinion, but not to his own facts"- --Daniel Patrick Moynihan--
(Score: 2) by frojack on Tuesday October 13 2015, @05:52AM
The odd thing about it is that storage isn't that hard, and DELL could make their own storage units, there is nothing magic here, simply slap a layer of linux on generic drives and call it a day.
Its probably EMC's holdings in Vmware stock they are after.
No, you are mistaken. I've always had this sig.
(Score: 3, Insightful) by PizzaRollPlinkett on Tuesday October 13 2015, @11:11AM
That's a good point. I don't know who picks up the bill, but this sort of thing is normally done with non-secured debt called mezzanine capital. Whoever lends that capital will be stuck if things go wrong. It's probably a pool of rich people chasing returns in the zero interest rate world we live in now. The risk is probably spread out so much it won't affect anyone too much. Anyhow, EMC probably has capital reserves which will get drained and transferred to people up front. Someone is going to get a lot of money up front as the wealth is sucked out of EMC. I don't know anything about this particular deal, of course, just how this stuff works in general.
(E-mail me if you want a pizza roll!)
(Score: 2) by jasassin on Tuesday October 13 2015, @07:00AM
Oh fuck me! Does this mean every VMware instance will come with the preloaded crapware on their desktops? They'll probably make a deal with McAfee. I give up.
jasassin@gmail.com GPG Key ID: 0xE6462C68A9A3DB5A
(Score: 3, Interesting) by PizzaRollPlinkett on Tuesday October 13 2015, @11:08AM
When similar old-line companies in a sector start merging, you know they're all dying. Office Depot, Office Max, and Staples are merging. All the various dollar stores are trying to merge. Sears and K-Mart were perfect for each other. Now storage companies are dying as computing moves to the cloud and as cloud providers are creating their own open-source hardware designs. None of these mergers ever produces anything new or exciting. Dying companies stay on life support a little while longer.
Next? Worker purges as Dell and EMC start consolidating operations. As you read the headlines, you have to remind yourself there is a shortage of workers in the technology sector.
Funny, but I just remmbered someone once sent me a Dell computer for some reason. I can't even remember why or what I did with it. I was the ship-to address. Not the purchaser. Dell has sent me advertisements for YEARS ever since, even following me after I moved. In my mailbox. Like every week or two. I have NEVER bought a Dell computer or even thought about buying one. How many years will they continue sending me these ads? Printed glossy ads in the mail, not electronic ones. Will they send them after I die? They could pay for EMC if they just cut out this waste.
(E-mail me if you want a pizza roll!)