Not everyone is excited about a multi-billion dollar merger between two seemingly traditional companies that sell hardware, storage and information technology (IT) services to other companies, especially in a new-age world of social, mobility, analytics and cloud (SMAC), Internet of Things (IoT), e-commerce, social networking, 3D printing and drones.
The India market at this point of time is opportune for a Dell-EMC deal to take place, considering India is still a host to large number of organisations that are yet to shift workloads to the cloud. The deal would put the company in a sweet spot as they would be providing end-to-end infrastructure in terms of both devices and storage,” Sanchit Vir Gogia, Chief Analyst and CEO of Greyhound Research, said.
He explained that EMC’s Big Data analytics software would be a good addition to Dell’s portfolio of solutions. “EMC’s Pivotal software would give Dell a good lead in complex cloud computing and data warehousing capabilities. EMC storage solution technology can help calibrate Dell’s existing offerings. While for Dell, storage has been a secondary business segment, it will benefit from EMC’s focused R&D (research and development) on the same,” Gogia said.
However, there is some overlap in the solutions that both companies offer in the storage and servers’ segments. Besides, Gogia pointed out that both companies “work with partners that are industry competitors—such as Dell with Nutanix and EMC with VMware. These partners could be left in a tight spot on how to sell,” he added.
Moreover, with the deal size being large in nature, the financial implications “will be felt throughout the company”, Gogia said, concluding: “In order to sustain the cost of the merger, Dell can look at workforce cuts. India specifically has substantial workforce under Dell, the consolidation of offices might cause disruption.