Dell has now agreed to buy data storage company EMC for $67 billion, one of the biggest deals between the two. This Dell-EMC merger possibility has left many people wondering how this deal affects the tech industry. Here?s how the merger affects, customers, both companies employees, and other technology companies.
Dell is planning to create opportunities integrating technologies to please customers, Computer World reported. ?We believe customers increasingly like that integration,? Dell boss Michael Dell stated. Dell states that their products as well as EMCs are ?largely complementary?, thus, disenabling the possibility for customer choice to be lessened by the deal.
Dell acknowledged that they will be laying-off employees, but they didn?t specifically state exactly how many will leave their jobs. ?There are certainly some cost synergies ? we?re not going to tell you that there aren?t,? Michael Dell said per Computer World. ?I think there are some other companies in our industries that are maybe far better at reducing headcounts than we are.?
The Dell-EMC merger will allow the company to directly access big enterprises, thus, the deal comes at a critical time when HP is splitting their business, analyst Charles King said per Computer World. The report said the deal will surely negatively effect HP. ?With EMC, Dell improves its ability to compete well beyond the SMB market into higher-end enterprise markets, which increases HP?s competition,? Computer World wrote.
?The bottom line, is that Dell-EMC combination will give Dell what it needs to compete with the likes of HP, Cisco, IBM and increasingly, lower-end players such as Huawei, analyst Glenn O?Donnel said per Computer World.?
According to BBC, Dell decided to expand their business after demand for computers has weakened. ?Our new company will be exceptionally well-positioned for growth in the most strategic areas of next-generation IT,? Dell said. Shareholders of EMC will receive $33.15 per share, the report said.