Archivo de la categoría: Dell

Cloud Native, Database, Dell, EMC, integration, M&A, Merger, News & Analysis

EMC & Dell execs outline integration plan to create Dell Technologies

EMC Dell Integration

Dell’s Chief Integration Officer Rory Read (Right) and EMC’s COO of the Global Enterprise Services business unit Howard Elias (Left)

Speaking at EMC World in Las Vegas, Dell’s Chief Integration Officer Rory Read and EMC’s COO of the Global Enterprise Services business unit Howard Elias offered some insight into the workings of the Value Creation and Integration Office, the team built to manage the integration of EMC and Dell during the course of the merger.

The Value Creation and Integration Office was created following the announcement of the merger last year with the intention of managing the transition of taking two tech giants and moulding them into one efficient organization. Both Read and Elias have experience of overseeing such activities, Read was for example the President of Lenovo during the Intel acquisition, though there are few similarities between the pair’s previous experience and one of the largest mergers in business history.

“Both companies have some extensive experience of acquisitions and incorporating other businesses, but we couldn’t use any of the playbooks for this one,” said Elias of the current merger. But while there are few examples to draw upon to build a blueprint that is not to say it is a more complicated task. In fact, the pair argued the integration of the two organizations has been a relatively smooth journey thus far, with few major roadblocks envisioned moving towards Day 1, the team’s nickname for the deadline when Dell and EMC will cease to exist as two separate organizations.

Read

Dell’s Chief Integration Officer Rory Read

“The collisions or overlaps are very minor, this is why the integration has been very smooth so far,” said Read, with regard to the overlap in business operations between Dell and EMC. The pair drew attention to the current focus areas of both businesses to explain the smooth integration thus far. While Dell and EMC play in the same arena, to date there has been very little direct competition between the two businesses. Read claims this lack of overlap makes their job easier, but ultimately creates a host more opportunities for the new company, Dell Technologies, in the future.

While combining the revenues of the two businesses would certainly make a significant figure, the team believe the cross-selling and up-selling opportunities created by having a single business offering both the portfolios would create more prospects. “Our customer overlap isn’t large and opens up a lot of new opportunities,” said Read

In theory, by cross-selling Dell and EMC’s portfolio’s in one product offering the team believe there is an opportunity to steal market share from Dell/EMC competitors, dependent on which one is the incumbent supplier. This cross/up-selling opportunity will enable the team to exceed the combined revenues of Dell and EMC, the team claims.

The integration will not stop with EMC and Dell as the company plans to merge the channel partners as well. Details of this aspect of the integration have not been released as of yet, however Read and Elias highlighted the channel partner programmes for both organizations would be phased in. Some announcements will be made on Day 1, though the majority will take place at the end of the year, as this is a natural time for the channel partners to expect a change in operating practise.

Elias

EMC’s COO of the Global Enterprise Services business unit Howard Elias

The final hurdles the team face are the Chinese regulators, the one remaining body to have not signed off on the merger to date. While Chinese regulators have proven to be a difficulty for other organizations in the past, Read and Elias claim it should be a relatively simple process for the team. Read highlighted the fact that all other regulatory bodies had signed off on the deal 100% with no condition attached, it was a good sign when considering the Chinese regulatory process.

In terms of headcount, although there were no official figures given, Read and Elias did indicate there will be job losses as a result of the merger. Due to there being few areas where the two businesses overlap, the reduction in headcount will be low, according to Read, but as with any other merger it is unavoidable. The team will not be releasing any comments or numbers relating to job losses until Day 1.

There have been difficulties in bringing two vast organizations together according to the team, though this is unavoidable in such a task. The $67 billion deal is one of the largest in business history, and it shouldn’t surprise many that the task of integration is a vast one also, though the team are confident the methodology which is in place to create one organization, will be successful.

“This deal is on time, on plan and on budget, from the schedule we set out in October,” said Howard. “The integration and merger is running smoothly and we’ll be ready to go. Day 1 is not the end of anything, it’s the beginning of our new company.”

data centre, Datacentre, Dell, Digital Era, EMC, IoT, Merger, News & Analysis

Welcome to the cloud party – Michael Dell launches Dell Technologies

Michael Dell at EMC World

Dell Founder and CEO Michael Dell

Speaking at EMC World in Las Vegas, Dell CEO Michael Dell and EMC CEO Joe Tucci outlined the rationale behind one of history’s largest mergers, and announced the name of the industry’s latest tech giant – Dell Technologies.

The group itself will be known as Dell Technologies upon the completion of the reported $67 billion merger, though there will also be several individual operating brands. Dell’s client services group will continue to be known as Dell, with the soon-to-be merged enterprise business known as Dell EMC.

“There are certain times once every two or three generations where everything changes,” said Tucci. “The industrial revolution went on for more than 100 years and changed everything they knew back then. Many new companies were born out of the opportunities that were created, and many failed as they didn’t. We are now on the cusp of an even bigger revolution, the digital revolution.”

Tucci, speaking at what he seemingly disappointingly admitted would be his final EMC World, highlighted the vast scale of change at which the world is undergoing currently. IoT and the connected world specifically are redefining not only the way in which individuals communicate with each other, but also the way in which enterprise organizations are structured and operated. The merger enables two companies, which could potentially be perceived as being stuck in a traditional IT world, to create a new brand which can capitalize on digitalization trends.

“We have to change rapidly to be on the wave of this revolution,” said Tucci. “The merger with Dell allows the company to change the concept of the business and capitalize on the opportunities presented by the digital revolution.”

Michael Dell’s contribution to the opening keynote focused more on the rate of innovation, normalization and implementation of new technologies which are driving the digital revolution. EMC World has now been running for 15 years, debuting in 2001, the same year which saw the launch of the iPod, Sun E25k as the state of the art data centre technology and the first availability of 3G networks. Dell commented that while these once-innovations could now be seen as relics, it raise the question of what is possible during the next 15 years.

Joe and Michael

EMC CEO Joe Tucci and Dell CEO Michael Dell on stage at EMC World

“Think about 15 years from now, to the year 2031,” said Dell. “Currently, if you want to code the human genome it takes around 36 hours. In 2031 it will take 94 seconds. In 2031 more than half the cars on the road will be driverless, and there will be more than 200 million connected devices. There will be thousands of innovations which we can’t even begin to perceive. I believe that it could happen sooner as well. The marginal cost of making something intelligent is fast approaching zero.

“The new digital, connected world will require data centre infrastructure to be architected in a different way. It’s going to be cloud native and operated on a Devops methodology. EMC and Dell are merging to create a company which can deliver this concept.”

“We are combining Dell and EMC to help you navigate a successful path, to modernise your IT, reduce costs and helping you create your digital future.”

The merger itself could be evidence of the weight of the digital world and the expectations which are placed on companies to succeed in the new ecosystem. Rather than attempting to change the perception of the organization which they oversee, like IBM and Intel for instance, the merger enables Tucci and Dell to create a new brand which can be defined as how and where they desire. Unlike companies who are in the process of redefining themselves for the cloud era, Dell Technologies can position itself where-ever it chooses in the market, without worry of legacy perceptions.

Dell also claimed the new company will have a significant advantage over competitors due to the fact it will be private. Leaning on the idea Dell Technologies will not have outside influences to be concerned about as publicly trading organizations do, Dell believes the new company can invest for long-term ambition, as opposed to short-termist aims which could be perceived to damage technological innovation.

The IoT wave is continuing to grow, and as we see more devices deployed, more data collected and more cloud-orientated behaviour infiltrating the boardroom, the role of the data centre is likely to become more evident. Dell believes the modern data centre will be the centre of the new technology world, enabling innovation in an increasingly competitive market, and the merger has created a new organization which can capitalize on these trends. The success of the new company remains to be seen, though the new proposition and brand does have the potential to remove perceived doubt as to how traditional IT players can operate in “The Next Industrial Revolution” as Michael Dell highlighted.

Dell, M&A, merger and acquisition, News & Analysis, NTT Data

NTT Data to acquire Dell Services for $3.06 billion

NTT DataJapan’s NTT Data is to acquire Dell’s IT Services business for $3.06 billion, in an effort to bolster its footprint in the North American region.

The announcement confirms speculation over recent months as to the future of the IT Services division, as Dell has been rumoured to be searching for a buyer for the business unit to aid financing of the EMC deal. Dell Services was initially formed through the acquisition of Perot Systems in 2009 for $3.9 billion. The new agreement with NTT Data will see Dell absorb an $800 million loss on the division and could indicate that financing the EMC acquisition is more difficult than initially expected.

In December, BCN reported Dell had been facing challenges in financing one of the biggest financial deals in history. For the $63 billion EMC acquisition to proceed, Dell has had to reduce its levels of debt with the Perot Systems business unit rumoured to be a favourite for sale.

The company will initially remain under the leadership of Suresh Vaswani, current President of Dell Services, who will continue to report to Dell CEO Michael Dell until the completion of the deal. It is believed that as part of the acquisition NTT Data will take on 28,000 Dell employees, though future leadership of the business has not been confirmed.

“NTT Data is pleased with the unique opportunity to acquire such high-calibre talent, and a corporate culture that shares common values with NTT Data, with emphasis on client first, foresight, teamwork and a commitment to innovation,” said Toshio Iwamoto, President and CEO of NTT Data Corporation. “Welcoming Dell Services to NTT DATA is expected to strengthen our leadership position in the IT Services market and initiates an important business relationship with Dell.”

NTT Data’s acquisition of the IT services division is the largest by the company to date and continues to bolster its North American footprint. Revenues for NTT Data in overseas markets has more than doubled since 2011 and in the same period the company has spent more than $600 million on acquisitions. The company has prioritized growth in the North America region, primarily targeting lucrative contracts in the healthcare, banking, financial services and insurance.

Since 2011 NTT Data has been proactive in bolstering its overseas business with a number of acquisitions throughout the world. In Europe it acquired companies including Everis and Value Team, in North America Optimal Solutions Integration and Carlisle & Gallagher were added, whereas iPay88 increased the company’s footprint in Malaysia.

“There are few acquisition targets in our market that provide this type of unique opportunity to increase our competitiveness and the depth of our market offerings,” said John McCain, CEO of NTT Data. “Dell Services is a very well-run business and we believe its employee base, long-standing client relationships, and the mix of long term and project-based work will enhance our portfolio.”

The deal could indicate that financing the EMC agreement has proved to be more difficult than initially expected. Dell Services as a business unit was reportedly to be valued in the region of $5 billion, which could highlight Dell’s urgency in completing the sale. If reports are correct, it would appear NTT Data has negotiated a good deal.

acquisition, Dell, M&A, News & Analysis, NTT Data

NTT Data to acquire Dell Services for $3.06 billion

NTT DataJapan’s NTT Data is to acquire Dell’s IT Services business for $3.06 billion, in an effort to bolster its footprint in the North American region.

The announcement confirms speculation over recent months as to the future of the IT Services division, as Dell has been rumoured to be searching for a buyer for the business unit to aid financing of the EMC deal. Dell Services was initially formed through the acquisition of Perot Systems in 2009 for $3.9 billion. The new agreement with NTT Data will see Dell absorb an $800 million loss on the division and could indicate that financing the EMC acquisition is more difficult than initially expected.

In December, BCN reported Dell had been facing challenges in financing one of the biggest financial deals in history. For the $63 billion EMC acquisition to proceed, Dell has had to reduce its levels of debt with the Perot Systems business unit rumoured to be a favourite for sale.

The company will initially remain under the leadership of Suresh Vaswani, current President of Dell Services, who will continue to report to Dell CEO Michael Dell until the completion of the deal. It is believed that as part of the acquisition NTT Data will take on 28,000 Dell employees, though future leadership of the business has not been confirmed.

“NTT Data is pleased with the unique opportunity to acquire such high-calibre talent, and a corporate culture that shares common values with NTT Data, with emphasis on client first, foresight, teamwork and a commitment to innovation,” said Toshio Iwamoto, President and CEO of NTT Data Corporation. “Welcoming Dell Services to NTT DATA is expected to strengthen our leadership position in the IT Services market and initiates an important business relationship with Dell.”

NTT Data’s acquisition of the IT services division is the largest by the company to date and continues to bolster its North American footprint. Revenues for NTT Data in overseas markets has more than doubled since 2011 and in the same period the company has spent more than $600 million on acquisitions. The company has prioritized growth in the North America region, primarily targeting lucrative contracts in the healthcare, banking, financial services and insurance.

Since 2011 NTT Data has been proactive in bolstering its overseas business with a number of acquisitions throughout the world. In Europe it acquired companies including Everis and Value Team, in North America Optimal Solutions Integration and Carlisle & Gallagher were added, whereas iPay88 increased the company’s footprint in Malaysia.

“There are few acquisition targets in our market that provide this type of unique opportunity to increase our competitiveness and the depth of our market offerings,” said John McCain, CEO of NTT Data. “Dell Services is a very well-run business and we believe its employee base, long-standing client relationships, and the mix of long term and project-based work will enhance our portfolio.”

The deal could indicate that financing the EMC agreement has proved to be more difficult than initially expected. Dell Services as a business unit was reportedly to be valued in the region of $5 billion, which could highlight Dell’s urgency in completing the sale. If reports are correct, it would appear NTT Data has negotiated a good deal.

cloud security, Dell, enterprise mobility, News & Analysis

IT security still a barrier to public cloud and employee mobility – Dell survey

Dell office logoDell has released the findings from its Data Security Survey which revealed IT decision makers are still not confident enough to encourage mobility or use of public cloud platforms.

Although the pattern over the last few years has been to broaden employee boundaries, increasing flexibility within the working environment, the survey demonstrated that a substantial number of businesses are resisting mobility due to security concerns.

The majority of businesses would claim cyber and cloud security sits at the top of the priority list, and whilst this might be the case, Dell’s survey has highlighted a number of deficiencies across the board.

Over the last 12 months the tech world has been lit up by numerous data breaches, hacks and leaks on both sides of the Atlantic. From TalkTalk to Ashley Madison to Kaspersky Labs, security has once more been highlighted as a major deficiency in the IT world.

Following a number of PR disasters for large scale enterprise throughout the world, 75% of decision makers agree that C-Suite recognises the importance of data security, though only 25% believe that the C-Suite is adequately educated about the issues to make informed decisions. The survey also highlighted that only 25% feel that their leadership has the ability to set suitable budget to tackle the challenges of data security over the next five years.

65% of mid-market companies are freezing plans to increase mobility within their workforce, with 67% resisting BYOD programmes, due to security concerns. The benefits of a mobility strategy, both from an employee satisfaction and productivity perspective, are well documented, though these statistics demonstrate security fears drastically outweigh the benefits. In fact, 82% of decision makers have made attempts to reduce mobility for employees, by decreasing data access points.

On the contrary, only 40% of respondents highlighted that they were actively interested in pursuing opportunities to increase employee mobility.

In terms of public cloud platforms, there does not appear to be a high level of confidence in offerings such as Google Drive. Almost 80% of decision makers said that they would not be confident in uploading critical data to the cloud, 58% highlighted that they believed the threat to be greater than 12 months ago, and 38% restricted access to public cloud sites within their organization.

Another area addressed by the survey is that of Shadow IT. Almost every business will have a strict IT policy in place, though there will still be a proportion of the workforce deems this to prohibit their working day. Despite the concerns of public cloud platforms, 83% of respondents acknowledge that their employees are using such platforms to store or share valuable data.

As these statistics demonstrate, most organizations have not identified the crossroads between security, assumed business risk and productivity, to most effectively enable the workforce.

“Security programs must enable employees to be both secure and productive, and this means enabling technology that helps them do their jobs,” said Brett Hansen, Executive Director, Data Security Solutions for Dell. “Companies can try to limit or prohibit public cloud use, but it’s more effective to use intelligent data encryption to protect corporate data wherever it may go, and reduce the risk of employees working around restrictive policies in order to be productive.”

While the survey demonstrates growth within the cyber and cloud security world, it also highlights a number of restrictions. On the positive side, security is now a priority throughout the business, as opposed to simply in the IT team. It also emphasises a slight overreaction from decision makers who have taken the move of reducing mobility and access to public cloud offerings; two areas which could increase an organization’s competitiveness in an already challenging market.

Dell, EMC, Europe, M&A, News & Analysis

EC clears acquisition of EMC by Dell – won’t distort competition

Dell office logoThe European Commission has approved the acquisition of storage and software giant EMC by PC and server maker Dell.

In a statement Commissioner Margrethe Vestager declared that the deal meets the criteria of the EU’s Merger Regulation. The strategic importance of the data storage sector meant that the EC was able to approve Dell’s multi-billion dollar takeover of EMC within a short space of time, according to Vestager, who thanked the Federal Trade Commission for close cooperation.

The Commission assessed the effects of the transaction on the market for external enterprise storage systems. The Commission also investigated the risk that the merged entity could attempt to restrict access to VMware’s software for competing hardware vendors. The Commission is convinced there will be no adverse effects on customers, according to Vestager.

The Commission found that the merged entity has a moderate market share in the market for external enterprise storage systems and the increment brought about by the merger is small. The new Dell/EMC entity will continue to face strong competition from established players, such as Hitachi, HP, IBM and NetApp, as well as from new entrants, it said.

Despite VMware’s ‘strong market position’ in server virtualization software, the available evidence led the EC investigators to conclude that the merged entity would have neither the ability nor the incentive to shut out competitors. The likes of Citrix, Microsoft and Red Hat can give it plenty of competition in the server virtualisation market, the EC has judged, and it predicted that the EMC/Dell hybrid won’t have things its own way in new technology markets.

Since customers typically multi-source from more than one server virtualization software provider and VMware’s approach has traditionally been hardware and software-neutral, it offers work opportunities to a large number of vendors. Equally, in the server market, Dell has strong competitors that will continue to operate either in partnership with VMware or with third party virtualisation software providers.

The combination of Dell’s and EMC’s external enterprise storage systems products won’t have an impact on competition given the number of alternatives to VMware’s software.

The Commission also asked whether the merged entity could shut competitors out from the virtualization software used for converged and hyper-converged infrastructure systems. Here it also found there were no concerns raised. The merger, when first reported in BCN in October 2015, was valued at $60 billion.

Dell, News & Analysis

Dell launches new backup and recovery services that straddle the cloud and the client

Dell office logoDell has announced a programme of new data protection initiatives to protect systems, apps and data that straddle private premise computers and the cloud.

There are four main strands to the new offerings: Dell Data Protection and Rapid Recovery, three new data deduplication appliances models, Dell Data Protection and Endpoint Recovery and a new Dell Data Protection and NetVault Backup offering.

The Dell Data Protection and Rapid Recovery system integrates with previous Dell offering such as AppAssure in order to help eliminate downtime for customer environments. Dell claims that users get ‘ZeroImpact’ recovery of systems, applications and data across physical, virtual and cloud environments. The Rapid Snap for Applications technology works by taking snapshots of entire physical or virtual environments every five minutes so users can get immediate access to data in the event of an incident. Rapid Snap for Virtual technology also offers agentless protection of VMware virtual machines.

The new Dell DR deduplication appliances are named as the Dell DR4300e, DR4300 and DR6300. The mid-market DR4300 offers up to 108TB of usable capacity while ingesting up to 23TB of data per hour. The entry-level DR4300e is a smaller scale, low-cost appliance that can scale up to 27TB. The DR63000 is a larger midmarket and small enterprise solution that delivers up to 360TB of usable capacity while ingesting up to 29TB of data per hour.

Dell Data Protection and Endpoint Recovery is a light-weight, easy-to-use software offering that gives customers endpoint protection and recovery solution for Windows clients. This is an offering for single users and starts off being free.

The Dell NetVault Backup is a cross-platform, enterprise backup and recovery solution that offers a spectrum of operating systems, applications and backup target support. A new option is to allow customers to break up backups into smaller, simultaneously executed chunks to increase performance.

Dell, Dell vWorkspace, Dell vWorkspace vs Parallels RAS, Dell vWorkspace vs Parallels Remote Application Server, Parallels RAS, Parallels Remote Application Server, RAS, Remote Application Server

An Overview of Dell vWorkspace

An Overview of Dell vWorkspace Unified business procedures are a key offering of the cloud revolution, and virtualization plays a key role in unifying business procedures across an organization. The entrance of Dell into the virtualization space speaks volumes about this trend. The recent acquisition of virtualization solutions company Quest by Dell has brought the […]

The post An Overview of Dell vWorkspace appeared first on Parallels Blog.

acquisition, Dell, EMC, M&A, News & Analysis, VMware

Dell EMC takeover raises questions about Virtustream and Perot Systems

Dell office logoTwo new developments have been reported this week as Dell and EMC attempt to resolve the $67 billion question of how to finance one of the biggest mergers in the history of technology.

Cloud software giant VMware has withdrawn from a previous commitment to the Virtustream cloud service venture with parent company EMC, it has disclosed to regulators.

The new direction comes as Dell, the proposed new owner of EMC and a potentially controlling stakeholder in VMware, is allegedly looking at new options to finance the $67 billion deal. According to sources quoted in Re/code Dell is looking for a buyer for its $5 billion valued technology outsourcing business Perot Systems. The funds raised would help reduce the level of debt Dell must take on if the EMC takeover is to proceed.

In November, BCN reported how questions of financing of Dell’s takeover of EMC could scupper the deal, which BCN first revealed in October. A week after the deal was announced, EMC and VMware unveiled plans for a joint, equal partnership to create cloud service Virtustream, but unease about the announcement wiped 25% off VMware share values, according to some analysts. Since Dell and its backers were planning to use share value as a means of funding the transaction the decline in stock market value threatened to undermine the funding of the deal.

Shareholders in both EMC and VMware are allegedly unhappy with the idea of the Virtustream project, which appeared to be a “dumping ground” for money-losing assets, it’s claimed.

VMware shares fell 25 cents to $58.80 by mid-morning Monday.

Meanwhile, as Dell seeks to raise $10 billion in cash to lighten the potential burden of debt, it is allegedly courting suitors for Perot Systems, an outsourcing outfit it bought in 2009 for $3.9 billion.

According to reports, Dell has been in talks with India-based Tata Consultancy Services, French outsourcing giant Atos, New York based IT services company Genpact and Canadian IT firm CGI. Talks with Tata stalled on a disagreement about the valuation or Perot Systems, say reports.

According to Re/Code sources Dell began trying to sell Perot Systems three months ago and the cash realised would be a crucial enabler for the EMC acquisition. However, a range of potential buyers who were sounded out, including IBM, Infosys and Hewlett Packard Enterprise, have passed on the opportunity.

Dell, EMC, Financial Results, M&A, News & Analysis, Virtustream, VMware

Shareholders question value in Dell/EMC deal

Dell office logoThe prospect of a potential shareholder revolt has changed the terms of the EMC takeover by Dell.

Under a new proposal EMC will retain a majority stake in Virtustream and has dropped plans to integrated it with VMware, according to sources quoted in Reuters.

Shares in VMware have lost a quarter of their value since Dell’s $60 billion deal to buy EMC was reported in BCN in October. The fall in share value could jeopardise the takeover deal, given the complicated stock related funding of the $67 billion transaction. Dell was originally set to pay EMC shareholders $24.05 per share in cash along with a special stock that tracks the common shares of EMC’s owned virtualisation company VMware.

Under the terms of the Dell deal, EMC shareholders will receive a 0.111 share of VMware tracking stock for each EMC share. However, with VMware shares falling, the value of one of EMC’s most precious assets is a major concern to stakeholders on both sides of the takeover.

A new plan has been hatched, reports Reuters, with EMC set to assume Virtustream’s losses by keeping a majority stake, while VMware will have a minority stake, in order to distance itself from the effects of the loss maker.

News of the new deal made VMware’s common shares improve in value by 3.85% at close of play on the New York Stock Exchange yesterday. Their current price stands at $60.35 a share. Uncertainty about the future of VMware has affected its ability to close deals, according to reports, while a disappointing earnings forecast for fourth-quarter revenue was blamed on currency fluctuations across China, Russia and Brazil.

Investors are asking EMC to launch a share buyback programme for VMware, according Reuters, but no decisions have been made. Activist hedge fund Elliott Management, one of the architects of strategy change at virtualisation company Citrix, is a top EMC shareholder.

Buying back shares could prove expensive, reported Recode. Since $5.7 billion of VMware’s $7.2 billion in cash and short-term investments is held outside the U.S. and subject to corporate taxes if the money is repatriated. Some shareholders pushing for the buyback have suggested taking on debt to pay for it.

EMC bought Virtustream for $1.2 billion in July and its ownership is shared between parent EMC and VMware on a 50/50 basis. Ending the joint venture arrangement could relieve pressure on VMware and cut the amount of capital spending and additional investment Virtustream would need, according to Bernstein analyst Toni Sacconaghi, in a research note seen by Reuters.