Dell has agreed to the terms of a $67bn deal to join up with the Massachusetts’s-based data storage company EMC in what could prove the biggest tech merger in history.
According to sources at Dell, the partnership “brings together the industry’s leading innovators in digital transformation, software-defined data centre, hybrid cloud, converged infrastructure, mobile and security.” However, not all are convinced of the deal’s capacity to reinvigorate either company.
Both have enjoyed long periods of explosive growth in years past, but also suffered the adverse effects of an evolving technology market
Both have enjoyed long periods of explosive growth in years past, but also suffered the adverse effects of an evolving technology market – as cloud computing and a shrinking storage market eat away at their margins. Nonetheless, the two will create the world’s largest, privately owned, integrated technology company – in a time where there is life yet in the IT market for an old dog still learning new tricks.
“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment,” according to the company’s founder Michael Dell. “Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes.”
Accommodating capital markets and cheap financing make the present time an ideal one for the transaction, and the sentiment is shared by technology giants HP and IBM also, who are undergoing transformations of their own. The consolidation of IT services is crucial in a period where larger clients are looking to buy from fewer clients, and the HP/EMC tie-up is arguably the most notable response to this development yet seen.