Dell to Buy EMC for About $67 Billion

Dell plans to pay $67 billion to purchase EMC, which will be the largest technology acquisition ever. Originally, Dell is more like just buy VMware, but EMC did not agree with that. So I believe after acquisition, Dell will cut off overlap part of EMC, which may half of current EMC.

This is also the biggest decision after Dell became private since 2013. Michale Dell really wants to do something which Dell should do. And this deal can make Dell production line extended into storage market, data center, which creating a corporate-computing giant, and meanwhile to bring more benefits, like to vie with perennial rivals HP, and upstarts Nutanix, also they will have their own enterprise software VMware, which can improve their products not just rely on Microsoft. We all know that Microsoft is turning to a software + hardware company, which will compete with Dell in enterprise market as well.

But to Dell itself, $67 billion acquisition of EMC is not small debt, the interest will be cost $2.5 billion per year. Which will cause the cash flow issue, and this is why I mentioned above, after merge, Dell may lay off the divisions which has overlap functions.

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About qianggan

Sr. Software Engineer
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