Dell buys EMC – What will become of Spring?
A massive merger between two companies brings together an impressive amount of hardware and software prowess. But with Dell acquiring EMC, what’ll be the focus? Will Pivotal still go public? What about Spring? Many are asking the same questions.
With the merger of Dell and EMC making big waves, we’re now faced with the realisation that VMware and Pivotal, and thus Spring, now have a new home. The purchase of EMC is a big step in Dell’s development, with a traditional PC and hardware vendor moving towards becoming a wide-spanning technology company.
By acquiring EMC, Dell now houses specialist knowledge of data storage, cloud, security and virtualisation. Dell will issue a total of $67 billion USD for EMC shares. Michael S. Dell, Founder, Chairman and CEO, felt good about the news:
Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security.
VMware will remain a publicly traded company under the leadership of Dell. Whether anything will change for Spring at Pivotal is not yet known. The same applies for Cloud Foundry.
In the meantime, Dell’s arch-rival HP has positioned itself as a smaller but more agile competitor. HP Enterprise CEO Meg Whitman turned in a skeptical memo to HP employees recently, calculating that Dell, in about $50 billion USD worth of debt with the purchase of EMC, must pay approximately $2.5 billion USD in interest per year.
Whitman went on to recognise that the merger was no easy task: The two companies, together worth $75 billion USD, must unite under a common operating ground. Two different cultures must come together, on top of nearly 200,000 employees, while “an entirely new strategy is developed”.
Dell is keeping what it plans to do with Pivotal under wraps for now. However, EMC Chairman and CEO Joe Tucci had previously revealed plans for Pivotal to go public. He hinted that this could happen as early as 2016.