5 Ways the Dell Purchase of EMC Will Benefit VMware
#Dell Inc. should finalize the purchase of #EMC this summer. Dell (a privately held company) will pay approximately $67 Billion for EMC (a publicly held company), making it one of the largest IT purchases ever undertaken. EMC’s crown jewel is its 80 percent stake in #VMware. Here are five takeaways about how Dell’s purchase will affect VMware for the better. TAKE 1 Long Term Investment vs. Quarter-Driven Profits. One of the biggest impacts is that Dell, as a privately held company, can make investments for the long-term. It’s clear that the IT companies that will survive need to think long-term. TAKE 2 Cloud Services. Amazon Cloud Services ( #AWS ) generated $2.6 billion in revenue during the first quarter of 2016; it continues to grow fast, and is Amazon’s most profitable business. This clearly shows how important cloud services are going forward. With the acquisition, Dell has the complete stack: its servers, EMC’s storage and VMware’s software. This, coupled with the ability to make the long-term investments in this space, could significantly enhance VMware’s chances of competing with the big boys.