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Dell Closes $60B Merger with EMC

wsj.com

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Re: Dell Closes $60B Merger with EMC

#101

Post by sangnoir »

xadhominemx wrote: post #63
jdpedrie wrote: post #41

Earlier quoted context omitted.

My dad works for EMC, and he's fairly bullish on the whole situation.

Why is that? Feels like AWS and Azure are bad for pretty much every aspect of their business. Genuinely curious.

> Why is that? Feels like AWS and Azure are bad for pretty much every aspect of their business. Genuinely curious.

I'm an outsider, but not all industries can use the 'real' cloud (AWS and Azure) for legal reasons (think banking, finance & health). VMWare + EMC storage can be part of a compelling self-hosted/hybrid 'cloud' solution.

Re: Dell Closes $60B Merger with EMC

#102

Post by Grishnakh »

valarauca1 wrote: post #69
Grishnakh wrote: post #49

Earlier quoted context omitted.

>Dell makes most it's money providing enterprise volume orders of desktops/laptop computers I wish they'd bring back the E6400/E6500 style of enterprise Latitude laptops, but of course with modern internals. These newer ones are much uglier and the screens are too short.

Economies of scale. Everyone wanted a high def 16:9 display, so the dyes for 4:3 became too expensive. I also miss my visually perfect 16:10, but alias time marches on.

I completely disagree. I'm sorry, but I find it impossible to believe that enterprise IT departments and businesses were jumping up and down for 16:9 displays. Maybe all the stupid consumers wanted them, but consumers are not the target customer for enterprise laptops.

I think it's much more likely that the laptop makers saw an opportunity to save money by going to 16:9 because of the massive growth in 16:9 LCD screens thanks to TVs, because the LCD factories were pushing them for economies of scale.

Re: Dell Closes $60B Merger with EMC

#104

Post by jdpedrie »

xadhominemx wrote: post #63
jdpedrie wrote: post #41

Earlier quoted context omitted.

My dad works for EMC, and he's fairly bullish on the whole situation.

Why is that? Feels like AWS and Azure are bad for pretty much every aspect of their business. Genuinely curious.

There's a lot of companies that need or prefer on-prem or non-cloud offerings for storage. EMC does really well in enterprise services, and likely will continue to do well.

Re: Dell Closes $60B Merger with EMC

#105

Post by benmcnelly »

signa11 wrote: post #23
jhall1468 wrote: post #20

Earlier quoted context omitted.

Now that the merger is complete a purge is inevitable. Whether or not they get rid of the correct employees remains to be seen.

> Whether or not they get rid of the correct employees remains to be seen does that ever happen ?

Depends on which employees you ask later ;-)

Re: Dell Closes $60B Merger with EMC

#106

Post by smartbit »

Nice comment by Trevor Pott http://www.theregister.co.uk/2016/09/07/my_dell_merger_wish_...

> More precisely, they didn't understand their own irrelevance.

> EMC's brass – along with that of many other tech companies – believed in a sort of manifest destiny. Their corporate largesse and sheer market share meant that they could dictate terms to customers. They believed, seemingly honestly, that this would persist.

...

> To this end, my wish list for EMC II revolves around R&D. Dell: please let EMC II experiment. Let them try new things. Above all let them fail.

Archive link http://archive.is/tYQy7

Re: Dell Closes $60B Merger with EMC

#107

Post by pinewurst »

2close4comfort wrote: post #43
chollida1 wrote: post #2

The 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 real opening EMC has is now being able to sell directly, effectively cutting out the Partner channel which EMC has cultivated over the years and which is why it costs so much by the time you am me go to buy storage. This is where that credit will come in handy. But really how many companies have DIED after being acquired by Dell, Compellent, Sonicwall, Quest SW, and now VMware/EMC. This is where things go to die…

This is a very ignorant statement on a variety of levels. The cost of storage sales is high enough that the likes of EMC, HPE and NetApp fight for channel partners to offload their sales of anything but the largest deals. Acquisitions admittedly seldom go well, but EMC doesn't have a bad record, considering.

Re: Dell Closes $60B Merger with EMC

#108

Post by _ouxp »

chollida1 wrote: post #40
loeg wrote: post #27

Earlier quoted context omitted.

> 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. It's trading at a 35% discount from VMW, which is pretty steep.

> It's trading at a 35% discount from VMW, which is pretty steep. Sure is, but keep a few things in mind.. 1) This is the first time tracking stock has been issued on a public company so there are alot of people out there who aren't really sure what to make of this class instrument yet. 2) You'd expect a steep discount due to liquidity and lack of typical share holder rights. For example, if VMWare did pay a dividend…

The big one, as far as I can tell (I've been reading through the prospectus and the latest dell 10q), is that the tracking stock is actually an unsecured interest in Dell (Dell Class V shares). So, you're exposed to Dell going bankrupt: secured creditors would get the vmware stake if Dell can't pay the ~ $1.6 Billion in interest they owe per year.
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