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Dell boasts of channel strength as EMC deal is sealed

Big is better seems to be the mantra coming out of Dell and its founder views its channel as a real strength as the acquisition of EMC is completed

After all the months of waiting the moment that EMC officially becomes a part of Dell has finally arrived giving the channel the chance to engage with the full product portfolio being offered by the giant hardware outfit.

Michael Dell, chairman and CEO of Dell Technologies, said that the deal had been made at a time when the world was at a pivotal moment, enjoying the early stages of the next industrial revolution thanks to digital transformation.

“We are going to be the trusted provider of essential infrastructure for the next industrial revolution,” he then reeled off all of the current areas of interest, including the highly topical virtual reality and smart technologies as places it wants to dominate.

“Dell Technologies will stand at the very centre of the action as the largest enterprise systems company in the world. More relevant to our customers and to supporting digital transformation of our world than anyone,” he added.

Dell said that it had a strong supply chain and the breath and size of the operation was an asset as it looked for market dominance.

“We are backed by the industry’s most efficient supply chain. We will drive efficiencies across our entire family of businesses. In go to market our new company has the strongest capability and the furthest reach, with more direct customers and a more powerful channel than any other technology company anywhere,” he said.

The new company will be structured with the traditional client solutions business being branded as Dell, the infrastructure operation getting the Dell EMC branding and then VMware, which continues to be a separate unit

The client solutions group will be split between consumer and commercial, the infrastructure side includes the EMC storage solutions and Dell’s own products in that area.

Pivotal, RSA, SecureWorks and VMware will be free to keep their own branding and develop their ecosystems as they see fit.

Tom Sweet, CFO at Dell, said that revenue across the combined company would be $74bn and it would have 140,000 staff and a customer base of 30,000 stretched across 180 countries.

He added that it expected to gain some savings from bringing together the supply chains of both firms and from cross-selling opportunities.

Industry watchers are expecting the deal to deliver some serious channel opportunities and many have highlighted the good work done by the hardware giant to reengage with the two tier model over the last eight years.

According to Forrester there are several opportunities that are immediately visible that should play into the hands of partners.

“Dell and EMC merge to become a data center infrastructure giant. Dell’s cloud focus has stayed on the enablement side, and its acquisition of EMC is a strong adjacency play. This establishes Dell as the largest system technology vendor in the industry, adding roughly $24bn in storage-related revenues to its portfolio,” the firm stated in its Evolve or Crumble: prepare for the fate of the hardware incumbents research paper.

“The merged company will enable hybrid cloud architectures and support multiple on-premises private cloud stacks as well as multiple public cloud environments. Dell is a powerful channel player, supplying many lower tier cloud service providers and other partners. We anticipate that this ecosystem will bear even more fruit for Dell as it adds EMC and VMware,” it added.

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