In a historic move, Dell announced its plans to acquire storage giant EMC for a staggering $67 billion, making it the largest deal in the history of the IT business. This acquisition solidifies Dell's position as a dominant force in the enterprise IT market, transforming the once PC-focused company into a $90 billion computing powerhouse. With this deal, Dell aims to leverage EMC's dominance in the storage market to compete with rivals such as Hewlett Packard Enterprise, Cisco, Oracle, and emerging players like Nutanix.
The Dell-EMC Merger: When and How It Happened
The public announcement of the Dell-EMC merger was made on October 12, 201The deal, valued at $74 billion, involved a combination of cash and stock. Dell paid $205 per share of EMC and $05 per share of tracking stock in VMware, an EMC subsidiary. This acquisition brought together Dell's enterprise server, personal computer, and mobile businesses with EMC's enterprise storage business.
The merger aimed to create a one-stop-shop for business customers, solidifying Dell's position in the market. After the merger, the combined company was named Dell Technologies and became the world's number one seller of storage systems, with the second position in the server market and the third position in the personal computer market.
This game-changing merger resulted in the creation of the world's largest privately controlled technology company. With an expansive technology portfolio that includes hybrid cloud, software-defined data centers, converged infrastructure, platform as a service, data analytics, mobility, and cybersecurity, Dell Technologies is now a market leader with a valuation of $74 billion.
The Impact of the Dell-EMC Merger
The Dell-EMC merger has had a significant impact on the IT industry. With the acquisition of EMC, Dell gained a strong enterprise storage component and entered the hybrid cloud computing market. This move allowed Dell to expand its offerings and provide a comprehensive range of solutions to its customers.
Hewlett & packard: pioneers in tech industryThe merger also brought together two industry giants, combining Dell's expertise in hardware and client solutions with EMC's leadership in storage and virtualization through VMware. This synergy has enabled Dell Technologies to offer innovative solutions and drive digital transformation for enterprises worldwide.
Hewlett Packard Enterprise's Acquisitions
While Dell was making headlines with its acquisition of EMC, its competitor Hewlett Packard Enterprise (HPE) was also actively expanding its portfolio through strategic acquisitions. Here are some notable acquisitions by HPE:
- Nimble Storage: In 2017, HPE acquired Nimble Storage, a provider of predictive all-flash and hybrid-flash storage solutions. This acquisition strengthened HPE's position in the storage market and enhanced its ability to deliver intelligent storage solutions to customers.
- SimpliVity: In 2017, HPE acquired SimpliVity, a leader in hyperconverged infrastructure solutions. This acquisition allowed HPE to offer an industry-leading hyperconverged solution that combines compute, storage, and networking in a single platform, simplifying IT operations and reducing costs.
- Cray: In 2019, HPE acquired Cray, a global supercomputing leader. This acquisition expanded HPE's high-performance computing portfolio and positioned the company as a leader in the exascale era, enabling customers to solve complex problems at unprecedented scale.
The Dell-EMC merger has reshaped the IT industry, creating a powerhouse in Dell Technologies with a diverse portfolio of solutions. This deal has allowed Dell to compete head-on with its rivals and establish itself as a market leader. On the other hand, HPE has also been actively expanding its portfolio through strategic acquisitions, strengthening its position in the market.
As the IT landscape continues to evolve, these mergers and acquisitions will play a crucial role in shaping the future of the industry. Both Dell Technologies and HPE are well-positioned to drive innovation, deliver cutting-edge solutions, and meet the evolving needs of customers in the digital era.
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