Can Dell Swallow EMC?

Dell acquires EMC This rumor has become increasingly nose-eyed. So far, however, all the news has been in the "Dell wants to acquire EMC" phase. A "Want" word indicates that there is too much uncertainty behind the affair.

Do you remember? Dell was confident that it would buy 3PAR, but eventually it was "cut off" by Hewlett-Packard, and Dell could only go back and buy compellent. Hewlett-Packard to now also take this acquisition to say, in this case, "3PAR is stronger than compellent, reasoning HP storage is also stronger than Dell storage." (This is actually a matter of the beholder, benevolent see)

However, "disguise, do not know the blessing." Compellent this Dell's second choice is now the mainstay of Dell's storage-the "mobile data" strategy of Dell is born out of Compellent. To some extent, Dell's current storage strategy has been developed and expanded around Compellent.

Dell is a vendor who is good at acquisitions. To strengthen its enterprise-class business, Dell has acquired dozens of vendors in storage, networking, security, software and other areas. One important reason Dell has been successful in its acquisition is that its acquired vendors are basically more smoothly integrated into Dell's existing product system without causing internal friction. Compellent's integration is a very good example.

There are comments about Dell's acquisition of EMC, believing that acquiring EMC could better drive Dell to an enterprise-class market. But EMC is not a compellent, both in terms of volume, product line richness, market position, and so on, both are very far. At first, Dell acquired Compellent only to fill the blank of the storage product line, even if the problem, the impact is only a product line, and acquisition of EMC will affect Dell's strategy and development of the entire company, if there is a problem, it must be hurt – big problem. And not to mention the possible $40 billion or 50 billion acquisition, how Dell can raise it, and how Dell is digesting and incorporating EMC into the existing product system is a big problem.

EMC differs from Dell's genes. To be more popular, EMC is "tall", always high-Gao Ta, and Dell is a "grassroots", and to subvert is the industry leader like EMC. Subversion does not eat it, it is also a way, but whether Dell's digestive system is strong enough is a problem.

In recent years, there has been a significant weakening of EMC's strong gas field. For example, at this year's VMworld conference, the organizers routinely invited EMC's leaders to take questions from analysts. According to an analyst familiar with the author afterwards, there were few questions at the meeting site, the atmosphere was very awkward. The analyst shook his head as soon as he mentioned it, and lamented that EMC was in such an awkward position, on the other hand, that the software-defined era was fast approaching, and that the traditional hardware-based vendors ' days were getting worse.

Since last year, EMC's share price has started to fluctuate, with a cumulative decline of 13% per cent. In July this year, EMC's financial results showed a sharp decline in net profits and thus lowered its annual performance forecasts. EMC's decline has been the cause of the big environmental downturn, as well as the impact of emerging technologies, and EMC itself has not found a more suitable new development path in the cloud era.

Does EMC lack technological innovation? No! EMC is the first vendor to launch a software-defined storage platform, and Xtremio's acquisition of flash memory is also very bright, but why is EMC's overall performance still slipping? EMC has always been proud of its unique "federalism", but why is VMware, one of the most important in the federation, often exposed to EMC's wrong-splitting up for a while before VMware acquires EMC?

There is no doubt that EMC is facing a daunting challenge in the era of transformational cloud computing, and as a leader in the storage industry, EMC's impact could be unthinkable by outsiders. For example, EMC has long been a benchmark for high-end storage markets, and because of this, EMC has had a stronger impact on the high-end storage market in the last two years-on the one hand, EMC is dealing with old rivals like HP and HDS, and , the wave, Acer Technology and other Chinese manufacturers in the high-end market also to the positive war against EMC. Charybdis, EMC's ship really experienced a turn-around embarrassment.

If EMC is really acquired, then a storage era will end. Chinese manufacturers who are trying to move to the high-end storage market may lose their "target" against the target. Chow Tousse, who has been postponing retirement time, may leave behind a desolate figure. Will the "EMC Commonwealth", which he strongly advocates and pushes, die? is VMware really as light and independent as people say?

EMC is really having problems, but seeking to be acquired will solve the problems that are currently being met? Or will the problem be hidden more deeply? Want to buy EMC to change their own vendors, whether it is the previous vibe of Hewlett-Packard, or now Dell, do you have a good, how to break the bottleneck of EMC? Will you be able to digest and assimilate EMC well in a way that is "moist and silent"? Without a 100% positive answer, it would be unwise to acquire EMC.

It's a smart move that Dell is actively moving to the enterprise market. Dell's current, open and cooperative strategy and system is also appropriate for Dell's own characteristics and needs, and it is also necessary to acquire technology-specific vendors like compellent, but it is important to think twice before acquiring a mass and already "stereotyped" company like EMC.

This article is from the "Guo Tao Storage World" blog, so be sure to keep this source http://gtstorageworld.blog.51cto.com/908359/1701384

Can Dell Swallow EMC?