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EMC-Dell merger to result in two divisions

Regina Pazvakavambwa
By Regina Pazvakavambwa, ITWeb portals journalist.
Johannesburg, 20 Oct 2015
The combined EMC and Dell will result in a privately owned company with a turnover of about $80 billion, says Jonas Bogoshi, country manager at EMC SA.
The combined EMC and Dell will result in a privately owned company with a turnover of about $80 billion, says Jonas Bogoshi, country manager at EMC SA.

The EMC-Dell deal will result in two components of the company being formed if it comes to completion.

So said Jonas Bogoshi, country manager at EMC SA, speaking today at EMC CIO Connect in Johannesburg.

Dell is buying data storage firm EMC for $67 billion. The deal includes cash and a special stock that tracks the share price in EMC-owned, and independently listed, VMware.

Bogoshi said one of the divisions will be an enterprise-focused organisation, which will combine the EMC and Dell enterprise products - managed from the EMC headquarters in Hopkinton, Massachusetts.

The rest of the business' key focus will be looking after the consumer products and mid-market companies, and will be run from Dell's headquarters in Texas, he added.

Michael Dell will become CEO and chairman of the new company, but for the meantime, Joseph Tucci remains CEO of EMC, noted Bogoshi.

The combined EMC and Dell will result in a privately owned company with a turnover of about $80 billion - $30 billion of the turnover will be from the enterprise business, he said.

Right now we are going through a 60-day'go shop', which allows EMC to look at bids from other interested parties, says Bogoshi.

"We expect the whole process to conclude in June-July 2016. For now, everything remains as it is - it's business as usual between the two companies."

VMware will remain a public traded company. "We will continue to invest in VMware for the company to drive software-defined data centres because we believe that is the future of digital business growth."

The new firm will be privately owned, which will allow the Dell-EMC company to invest in long-term value creation, said Bogoshi.

According to Bogoshi, the relationship with Cisco will still remain and Cisco will continue as co-part of the virtual computing environment company formed by Cisco and EMC with investments from VMware. EMC holds the majority shares.

If this merger goes through, it will form one of the leading companies and fast-growing part of the IT industry, focusing on digital transformation of businesses, concluded Bogoshi.

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