I've spent a lot of time talking to my fellow EMC'ers about the pending transaction between EMC and Dell. Following is a list of my own personal beliefs about why the combination will be a very good thing.
- Complementary nature of our products - In general, we have a lot of to share across our product portfolios. Among other things, this means Dell servers will probably be standard issue for EMC converged infrastructure products. There are also smaller, but equally exciting opportunities. For example, EMC's online backup business (Mozy) has millions of consumer and small business users. I'm guessing that the Dell ecosystem will be an even a better place for that business to thrive.
- Proven history - In the early 2000's both companies had a reseller partnership together which resulted in billions of dollars in incremental revenue. It is great that the agreement has been dusted off and re-established while we wait for the transaction to complete. This new combination will make that reseller arrangement look quite simple, not to mention small.
- Scale and strength of the combined company - The economies of scale with a company of this size are tremendous. We'll have hundreds of thousands of employees, many tens of billions of dollars in revenue, a massive partner network, and a huge customer base. We'll be able to provide more and better products and services more efficiently than before.
- Long-term view of a private company - It will be very helpful to have a view of our business that is longer than just 90 days. We'll be able to mitigate challenges, like large swings in inventory which spike at the end of a quarter. Instead, we'll be able to make business decisions based on carefully considered facts and the strategic fit for all parties. At the same time, we'll have more latitude to increase our R&D investments.
- Complementary customer relationships - EMC is world-class in terms of enterprise customer relationships and very solid in the commercial/mid-market space. Dell is world-class in terms of consumer and small business customer relationships, solid in the mid-market, but with room to grow in the enterprise space. Together we will have unmatched technology choices for everyone, no matter what their industry, size or appetite.
- Cultural alignment - My own personal interactions with Dell employees have been very encouraging. But perhaps most encouraging are the conversations I've had with EMC'ers who worked at Dell in the past. One of them worked in Texas and another in Utah. In both instances, they shared stories about giving back in the community, the value of integrity and diversity, and a passion for changing the world through technology.
- New personal opportunities - I am personally excited about the many new people I will get to meet, the new things I'll be able to learn, and the new opportunities that will undoubtedly emerge. Regardless of your role, including in our customer and partner ecosystem, I believe we will all have an opportunity to learn more and do more with that new knowledge and the new relationships.
- Brand recognition - The only complaint I have about working at EMC is the fact that I have to explain who we are and what we do in 9 out of 10 external conversations (CIO's & IT geeks excluded). Dell, on the other hand, is a household name. Of course, most people don't fully understand the breadth and depth of the Dell portfolio, but at least there's a solid, directionally accurate start for the discussion.
- Strong intermingled executive leadership - Michael Dell is a world-class executive surrounded by multiple others. Joe Tucci assembled an equally stellar groups of executives, like David Goulden, Howard Elias, Bill Scannell, Jeremy Burton, and others. The first glimpse of what will be a new executive leadership team promises to include people from both companies. This intermingling will be instrumental for the smooth operation of the combined companies, I'm sure.
- Strategic alignment of closely-held entities - Not the least of these entities is VMware, which will be majority-owned by the new combined company. The entities also include Pivotal and SecureWorks. These businesses are multi-billion dollar ventures on their own and all very relevant for our customers. Think of this strategy as version 2.0 of what EMC called "The Federation" and what we'll now call "Dell Technologies."
Remember, these are my own personal beliefs. Read the official details, including all of the appropriate disclosures about forward-looking statements, etc. here.