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What's Really Happening Inside the Dell, EMC Merger


This is an important read people, the landscape is changing!

LAS VEGAS—If you ask any of the top brass at either Dell or EMC, they are all well-rehearsed in telling you that everything is perfectly "on track" and "in order" in bringing two of the world's largest and most successful IT hardware/software vendors together under one corporate roof by next fall.

To that we say, "Thank you very much, and, by the way, nice try." Our reaction, along with a lot of people to whom we spoke at the recently concluded EMC World 2016, is—and I quote—"Bull Pucky."

Mergers, especially those of this scale, cannot zoom along as if on rails. This is patently impossible. Two giant Tyrannosaurus Rexes who have been gobbling up other animals and companies for years—and bloodied each other in some big fights in the storage markets—could hardly step politely onto the same container ship and sail off into the sunset as BFFs. Ask AOL and Time Warner, Hewlett-Packard and Compaq or Oracle and Sun Microsystems if you don't believe this.

Friction Is Carefully Hidden

There is friction wherever one looks at Dell and EMC. There are simply too many proprietary charging plugs and codebases that don't fit or don't work together. There are too many national and foreign regulators to satisfy, especially in China at this time. There are too many overlapping product lines, too many similar jobs, too many salespeople competing with each other and too many redundant solution partners.


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