Menu
​Sixth mega-vendor emerges as Dell/EMC deal rocks enterprise boat

​Sixth mega-vendor emerges as Dell/EMC deal rocks enterprise boat

New technology powerhouse joins industry heavyweights HP, IBM, Microsoft, Oracle, and SAP.

Michael Dell - Chairman and CEO, Dell

Michael Dell - Chairman and CEO, Dell

The proposed acquisition of EMC by Dell and Silver Lake Partners creates a genuine mega-vendor that will join the industry heavyweights HP, IBM, Microsoft, Oracle, and SAP.

Both companies have individually been prospective candidates for this supergroup, but the combined entity has the breadth of products and services, and the scale, to compete for a strategic share of the enterprise wallet.

“A key question for those enterprises, however,” asks Tim Jennings, Research Analyst, Ovum. “Is whether the enlarged company will end up looking like a legacy dinosaur or a powerful enabler of digital transformation.”

Ovum defines a mega-vendor as a technology provider with a range of solutions encompassing software, services, hardware, and ecosystem that makes it a strategic provider to a significant proportion of the enterprise market.

“Dell / EMC certainly fits this profile, with both companies having made multiple acquisitions over recent years to extend their propositions beyond their core hardware background,” Jennings adds.

“Even leaving aside the huge success story of VMware, a portfolio that includes assets such as Perot Systems, Quest Software, Boomi, Compellent, SecureWorks, RSA, Documentum, and Pivotal underlines that diversification.”

But for Jennings, the new company will “have its work cut out” to combine these assets into solutions and partnerships that fit the changing role of IT in a digital world.

“As others in the mega-vendor group have found in recent years, scale does not guarantee success, and we have seen patchy financial results, separations, and structural change as these companies have navigated the transition to the cloud and tackled new competitors such as Amazon Web Services and Google,” Jennings adds.

“For Dell/EMC, although consistently rising demand for storage can fuel growth for a while, over-reliance on its core assets will lead to stagnation, so some bold moves and investment in innovation will be required to avoid the mega-vendor pitfalls that have dogged others.”

Read more: Dell study shows investment in four key technologies is paying off


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftHPOracleVMwareDellIBMemcSAPovumMIchael Dell

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments