EMC which is said to be a giant in the software, security and storage, has been announced to be bought by Dell for $67 billion which is the highest tech deal till now ever.
After the completion of the deal, Dell will be transformed from a business of consumer personal computers to a provider of IT solutions to organization. The scenario started when Perot systems were purchased by Dell for $4 billion during the year 2009
In the biggest tech deal of all time, Dell announced Monday that it has agreed to buy corporate software, storage and security giant EMC for $67 billion and strangled in 2013 after the step of Michael Dell of taking the business private.
EMC is one of the largest corporate IT businesses and has been providing the storage hardware at a very large scale. The company making servers as well as there is another security company under EMC called RSA whose secureID tokens are very well known to be not simple to be accessed.
Dell which is very hopeful that it in a great position to grow in the strategic parts of the upcoming generation of IT will now combine with EMC and become a powerhouse of the enterprise solutions.
Both of the companies have been passed by the latest technology trends called the cloud which was the reason of some struggle for them. EMC got the recognizatrion with the sales of storage systems to the companies for their data centers. Now the storage of the stuff of the companies is less expensive due to the cloud entities such as Amazon. The management of the own data centers is not a trend for the businessesw these days.
Meanwhile, the challenge is being faced by the 2nd biggest server maker in the world, Dell because the storage is offloaded by the organizations to the cloud compnies which are Amazon, Google and Microsoft. Most of the companies have even allowed them to handle their web serving and email as well.
Both EMC and Dell have made heavy investments in cloud but the stock of EMC sunk during the current year. Dell was urged for a leverage buyout privately and huge borrowing was the parrt of it.
Dell said the company will remain private — for now. The complicated EMC deal will be financed with a significant amount of debt, while VMWare (VMW) will remain publicly-traded.
It can be seen in the future that both the companies will do better after combining but if the recent mergers in the tech industry are considered, then we will come to that they could not grow bigger.
The merger of both of these companies is extraordinarily huge. It is even heavier than the $37 billion merger of Avago and Broadcom, almost twice of that.