Dell Closes $60B Merger with EMC
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Re: Dell Closes $60B Merger with EMC
#2The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term.
Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does against its public counterparts, specifically wrt short vs long term investment.
If you were wondering how the new company is doing post merger...
Moody's just upgraded Dell's credit rating from Ba2 to Ba1 following the merger. They claim that even though the new entity has significant amounts of debt and leverage, its overall credit profile has been upgraded.
The tracking stock, DVMT, that EMC owners were given has traded pretty well since it was released, it's slightly up, so atleast people who want out of the new entity have an easy avenue.
Re: Dell Closes $60B Merger with EMC
#3The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
I'm just fascinated by the fact that in 2016 there are still huge companies like this making their money on ancient tech that is insanely overpriced to the alternatives.
(~20 years ago when I started working in software I thought I would eventually get how these enterprise software giants actually were worth it. The more I learn and age...)
In the end I guess what companies like Dell and EMC do is to provide access to tech that otherwise (because of cultural reasons) is not available to non-tech companies. But.. anyway, all of this seems like it's ripe for disruption.
Re: Dell Closes $60B Merger with EMC
#4Dell tried to get into the cloud services market a long time ago, and didn't succeed. VMware is a weird case too, especially with containerization and cloud service vendors being cheaper to use than building your own cloud. If Dell is trying to make their own cloud, I wonder if they'll succeed this time. Some people have said that ship has sailed for them. Then again, a company like Google has made a compelling competitor to AWS.
Re: Dell Closes $60B Merger with EMC
#5The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
I'm just fascinated by the fact that in 2016 there are still huge companies like this making their money on ancient tech that is insanely overpriced to the alternatives. (~20 years ago when I started working in software I thought I would eventually get how these enterprise software giants actually were worth it. The more I learn and age...) In the end I guess what companies like Dell and EMC do is to provide access t…
> I'm just fascinated by the fact that in 2016 there are still huge companies like this making their money on ancient tech that is insanely overpriced to the alternatives.
It is basically about switching costs. Even if you have the money you don't want to disrupt your operations because IT is doing a monster migration to different technologies.
Re: Dell Closes $60B Merger with EMC
#6The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
I'm just fascinated by the fact that in 2016 there are still huge companies like this making their money on ancient tech that is insanely overpriced to the alternatives. (~20 years ago when I started working in software I thought I would eventually get how these enterprise software giants actually were worth it. The more I learn and age...) In the end I guess what companies like Dell and EMC do is to provide access t…
I've heard the "insanely overpriced" comment before - compared to what? The open source/cheaper alternatives tend to be, bluntly, a joke when it comes to the data storage market. They all either have glaring availability or feature gaps that people who champion them try to paint as "not a big deal". It's not a big deal until your fortune 500 relies on it.
Re: Dell Closes $60B Merger with EMC
#7The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
> services 98% of all fortune 500 companies.
So it's a short list of ten for the other 2%. IBM, HP, ... ??
(Clarification: the ten who don't buy from Dell+EMC. Just curious about that. Direct competitors is my first guess ...)
Re: Dell Closes $60B Merger with EMC
#8The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
> The new company services 98% of all fortune 500 companies.
How is this not an antitrust issue?
Re: Dell Closes $60B Merger with EMC
#9The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
> The new company services 98% of all fortune 500 companies. How is this not an antitrust issue?
I think that servicing 98% is not the same as 98% market share, and that anti-trust cares about market share. All it means is that 490/500 companies bought at least one Dell/EMC product. I'd assume most also bought at least one IBM/HP product too.
Re: Dell Closes $60B Merger with EMC
#10The new company services 98% of all fortune 500 companies. That's a pretty incredible reach. And 140,000 employee's. If I were a betting main, I'd expect that number to drop in the very near term. Selfishly I'm very interested in following a private Dell,as tech tends to lead to huge companies in monopoly/winner take all verticals. Dell being private is a decent case study to see how well a private company does again…
> The new company services 98% of all fortune 500 companies. How is this not an antitrust issue?
They're not necessarily the only company those 98% use... I'd guess that Dell is already a supplier for at least nearly that high of a percent in some regard.
In the end though, just because you have a near monopoly doesn't mean you're violating anti-trust. EMC already had that reach, even without dell.