For Dell, scale matters

For Dell, scale matters

Even though Dell Technologies is selling off its enterprise content management business to OpenText, make no mistake: scale matters to Michael Dell.

Dell’s acquisition of EMC (announced late last year) was officially completed last Wednesday, creating the world’s largest privately-controlled technology company. In a conference call with media and analysts to mark the occasion, Michael Dell said, "This is a fantastic day for our customers, our company, our team members and our community employees. We are creating the next great tech company that can do advanced innovation at scale than any company on the planet."

Dell's comments were made before the announcement Monday of the sale of Dell EMC Enterprise Content Business. Though Dell is apparently going for scale, the sale makes sense, analysts said. The move will let Dell sell a noncore business unit and potentially pay down some of the debt it took on to make its $67 billion acquisition of EMC.

Talking about the composition of the new Dell Technologies, Michael Dell said, "The two biggest products of Dell Technologies are very familiar. Our client solutions business will continue to be known as Dell and Infrastructure Solutions Business bringing the very best of Dell and EMC will be known as Dell EMC."

"The rest of our family - Pivotal, RSA, SecureWorks, Virtustream and VMware – will continue to keep their independence and freedom to develop their own products and systems," he said.

IDG India asked Michael Dell to respond on the real impact of Dell Technologies and how it will change the face of the competition landscape. HP has split and now HPE is reported to be headed for the private route and another foe IBM is becoming more software-centric. But Dell Technologies is encompassing everything – hardware, software, cloud, services – under one roof.

"I can’t comment on the rumors related to other companies," said Michael Dell. Of Dell, he said, "Dell Technologies is an industry-changing event. If you think about the other companies out there, they are in some form or other reacting to what we have done so far. That basically forms their strategy."

Michael Dell, emphasizing on the absolute value proposition of Dell Technologies said, "We at Dell have said for a long time that scale matters. The ability to invest for the long term matters. We think innovation and the breadth of GTM reach matters as well in the modern IT world."

"We feel that we (Dell and now Dell Technologies) possess the right ability to build interesting fast-growth parts of our industry as well as those where there is consolidation underway," said Michael Dell.

"We feel quite confident in the pursuit we have taken and we will see how the competition reacts to it," said Michael Dell.

IDG Insider


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