Michael Dell attacks “shrinking” competitors and claims new Dell Technologies group will be the linchpin of the next industrial revolution
Dell’s founder, Michael Dell, took to the stage at EMC World this week to big up the potential of a Dell/EMC group – and slate its competitor HP.
In February, US regulators gave a $67bn (£46.2bn) Dell takeover of EMC the go ahead, but the deal is still a few months from being finalised.
It is expected that an EMC shareholder vote will take place in June 2016, with a positive result seeing the acquisition rubber stamped.
Dell is borrowing about $50bn (£34.5bn) to make the deal happen, the company confirmed in an SEC filing in December 2015. Dell also still has roughly $11bn (£7.6bn) in debt from a $24.4bn (£16.8bn) deal that saw it go from public to private.
Michael Dell also confirmed that once the takeover is complete, the group of companies will be called Dell Technologies.
“EMC has an unmatched reputation when it comes to architecture solutions for the enterprise. At Dell, we have unmatched strength in the midmarket. The cumulative horse power of our channel partners also helps us deliver solutions and expand our reach around the globe.
“Together, we can fuel innovation across our combined portfolio and across customer segments. Think about the scale we’ll have as a company.”
Not only are Dell and EMC’s portfolios very well aligned, Dell explained. Their points of view about the future are too.
“While our competitors like HP are shrinking their way to success…wait, you can’t shrink your way to success. That’s not even a real thing – but they’re doing it. They’re shrinking their way to success.”
Dell was referring to Hewlett Packard splitting into two separate businesses in November 2015 – HP and HP Enterprise.
HP Enterprise specialises in commercial computer systems, software and tech services, while HP sells PCs and printers.
Dell said: “They’re getting smaller. They’re separating their edge from their core. For them, it means less innovation, less investment, less R&D, a smaller supply chain and losing share in each of their businesses to Dell. Even right now, during this period.
“And we’re going in the opposite direction, building scale while fostering speed, agility and innovation. By combining Dell with EMC we can become the essential technology infrastructure for the next industrial revolution.”