Welcome!

@CloudExpo Authors: Yeshim Deniz, Zakia Bouachraoui, Liz McMillan, Elizabeth White, Pat Romanski

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Recurring Revenue, Artificial Intelligence, @DXWorldExpo

@CloudExpo: Blog Feed Post

Dell + (EMC+VMW) = A $67B Gamble | @CloudExpo #BigData #Microservices

HP CEO circulated an internal memo suggesting how this will be great opportunity for HP

Yesterday, Dell announced the largest technology M&A in history with a proposed $67B buyout of EMC and VMware (via EMC’s 80% ownership of VMW). The combined company will have over $80B in revenue, employ tens of thousands of people around the world and sell everything from PCs, servers & storage to security software and virtualization software. Not to be overlooked is the fact that Dell and EMC will be private companies and free from the scrutiny of activist investors.

Dell has to borrow a ton of money to make this deal, like $40B debt. The annual interest payment will be $2.5B! This deal has three entities – Michael Dell’s own investment, Silverlake Partners, and Singapore based Tomasek. On paper this seems like the two companies bring complimentary values – Dell sells to small to medium size companies and EMC addresses the larger enterprise needs. The big attraction for Dell is the VMWare piece that revolutionized the desk-top virtualization market. Currently VMWare is 25% of EMC’s revenue, but 50% in valuation.

The concern is that as more corporations adopt cloud storage and cloud computing for their IT needs, there is less reason to spend money on the costly software and hardware upgrades typically offered by established IT companies like EMC. But by consolidating, they can better compete against the lower-cost cloud service companies – AWS (Amazon Web Services), IBM, Alphabet (Google), and Microsoft Azure.

This is going to be a big gamble. The HP CEO circulated an internal memo suggesting how this will be great opportunity for HP, as the combined company will create a lot of chaos and confusion. At the same time, being private, the new entity can execute radical restructure. But this will be a herculean task to make the combined company a winner in the highly competitive “IT infrastructure” market.

More Stories By Jnan Dash

Jnan Dash is Senior Advisor at EZShield Inc., Advisor at ScaleDB and Board Member at Compassites Software Solutions. He has lived in Silicon Valley since 1979. Formerly he was the Chief Strategy Officer (Consulting) at Curl Inc., before which he spent ten years at Oracle Corporation and was the Group Vice President, Systems Architecture and Technology till 2002. He was responsible for setting Oracle's core database and application server product directions and interacted with customers worldwide in translating future needs to product plans. Before that he spent 16 years at IBM. He blogs at http://jnandash.ulitzer.com.

CloudEXPO Stories
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by sharing information within the building and with outside city infrastructure via real time shared cloud capabilities.
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed how this same philosophy can be applied to highly scaled applications, and can dramatically increase your resilience to failure.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a multi-faceted approach of strategy and enterprise business development. Andrew graduated from Loyola University in Maryland and University of Auckland with degrees in economics and international finance.