Dell and EMC data center

Dell and EMC Merger: The Company Acquisition Going Down in History

24 Oct 2016 by Isabel Ticlo

For nearly three decades, Dell continues to represent a reliable, innovative resource for business and household technologies and solutions. On Oct. 12, 2015, Dell Inc. formally announced that it intended to acquire EMC Corp. for $67 billion or $33.15 a share. With increasing use of cloud-based solutions, Dell Inc. struck the deal to start the process of moving away from the server business while expanding into private cloud computing and the data storage market. On Sept. 7, 2016, the completion of the agreement was confirmed and publically released — making it one of the biggest tech mergers to make enterprise business technology news.

Dell: History in the making

In 1984, PC’s Limited was established by 19-year-old Michael Dell. With only $1,000 in his pocket, and a simple vision for a more technically driven future, Dell set off on an incredible journey, transforming the startup into a technology giant. Since then, the company has been praised as the No. 1 computer systems provider worldwide in 2001, one of “America’s Most Admired Companies” for Fortune Magazine in 2005, No. 1 for healthcare solutions in 2010 and more.

With the acquisition, Dell Inc., now known as Dell Technologies, has become one of the world’s largest privately-controlled technology companies. As you can see in the chart below, Dell is currently ranked 4th by revenue out of all U.S. companies for 2016. With the momentum of the merger, there is a possibility that Dell Technologies will surpass Albertsons Companies Inc., a grocery store chain based in Boise, Idaho, within the next year.

Top 20 private U.S. Companies in 2016 (in billions U.S. revenue)

Meet Dell Technologies: Starting off strong

Dell Technologies is now supported by businesses including Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream and VMware.

“Being attached to other units will push the company's growth into high gear,” says Jeremy Burton, chief marketing officer at Dell.

With the rebrand, the company gains other businesses that are specialized in their select fields. The collaboration and conglomeration that is Dell Technologies is notably established as a $74 billion tech leader that will be able to leverage Dell’s strength with small business and mid-market customers and EMC’s strength with large enterprises.

"We are at the dawn of the next industrial revolution. Our world is becoming more intelligent and more connected by the minute, and ultimately will become intertwined with the vast Internet of Things, paving the way for our customers to do incredible things. This is why we created Dell Technologies. We have the products, services, talent and global scale to be a catalyst for change and guide customers, large and small, on their digital journey," says Michael Dell, chairman and CEO of Dell Technologies.

EMC net revenue from 2008 to 2015 (in billions U.S. dollars)

As depicted in the chart above, EMC corporation had experienced a steady incline of net revenue from 2009 to 2015 — generating around $24.7 billion last year. EMC’s powerful positioning in the market and its promising revenue intake indicate opportunities for Dell Technologies to achieve growth and newfound success. Plus, the compatible nature of the companies and their assets will help accelerate tools such as EMC storage arrays, VMware vCloud and Dell network storage.

What does this mean moving forward?

At its core, Dell Technologies is focused on addressing costumer needs for mobility, cloud computing, storage, data, Internet of Things (IoT) devices and more. With the increasing shift in demand for server-based storage, IT buyers are now looking for more flexible data center and virtualization solutions.

Over the years, Dell’s already established role as a top-of-the-line provider of server solutions puts it in an ideal position to expand. With powerful rack servers and modular data center solutions, Dell has no problem taking storage to the next level. Now, with the Dell EMC merger, the company also has all the benefits of flexible, hybrid cloud-based solutions and converged offerings at its fingertips. According to Forbes, the new, Dell Technologies has the cohesive portfolio necessary to be a formidable vendor, partner and competitor with almost 30% of the total revenue of enterprise storage systems in the second quarter of 2016.

“The IT landscape is rapidly evolving to more hyper-converged solutions, and the combination of these two great technology companies will provide further leadership in the fastest-growing areas of the IT industry,” says Chris Kelleher, Insight’s Director of Strategic Alliance for Dell. “With this combination of expertise, Dell has positioned itself to lead the way, be more agile and to meet the demands of these evolving businesses.”

Insight was Dell’s Healthcare Partner of the Year for 2013-2014. This year, we were named Dell EMC Premier Partner of the Year and and Dell EMC Philanthropic Partner of the Year at Dell EMC World. Together, with similar values and focuses on productivity, mobility, network, security, cloud, virtualization and more, we help customers solve their unique business needs. As Dell Technologies takes off, Insight will be here to connect you to the best devices and Intelligent Technology solutions that fit your industry.

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