Sunday 1 November 2015

VMware: Dell's purchase and the spoils of war

The real price of the transaction Dell EMC is buying partner of VMware, Inc. analysts predict worldwide everything from total destruction VMware VMware as a prodigy effective production. They are wrong.

Many, including HP CEO Meg Whitman, predicted chaos that integrates Dell and EMC in their offers. Some have even gone so far as to say that Dell will destroy VMware. I do not think Dell will destroy VMware, and I think Dell will extract full benefit from it to fund the dreams of Dell. I do not think that ownership of VMware Dell will ship the masses run on Microsoft Hyper-V salvation. I get the impression that VMware will remain an independent entity with its own management, as it has done from the beginning.

Comments Meg Whitman in the post above: "Fourth, this move will cause chaos in the channel and programs that combine two different approaches." By this statement, quote Sun Tzu, The Art of War: "Amid the chaos, there is also a possibility."

I think all the minimum chaos the causes of this agreement, business continuity prevail. There is no reason to do things differently, they are doing at this time. VMware does nothing wrong. Although I have not always agreed with everything his leadership did, the company is struggling financially. It produces the best and most compatible virtualization products on the market.

Dell Why play successfully?

The short answer is that it will not.

VMware is an advantage in buying Dell EMC. A'm sure is very proud.

EMC, Dell, is an empire builder, having bought six dozen companies since 1996 in the areas of storage, storage management, virtualization, services, security and content management.

Portfolio of hardware, software and services, Dell has increased to the point that it is now a real competitor in the same space as IBM. And I think that the continuity of the company to its customers is a priority. To my knowledge, Dell has never been a slash and burn or tear and replacement company.

To answer another of the statements of Mrs. Whitman: "Thirdly, the union of two portfolios together require a significant amount of rationalization of products, which will be detrimental to your business and create confusion for customers Customers simply will not whether the products they buy. company now supported in the next 18 months. "

I agree with this. Remember Compaq, autonomy and Palm? Oh wait sorry, this is Dell. Well, now I do not agree. I think Dell will continue to support your purchased products. Of course it will rename these products, it makes sense to merge to merge, and maybe even throw a few in the process, but I hope that Dell will honor their customers with support.

Sun Tzu had to say about the spoils of war following :. "Celebrate the winners and make the courageous decision of the spoils of war glorious thing, however, also beware of the adverse effects of extrinsic motivation When the war booty .. become the main motivation, soldiers lose focus. "

The lessons of his words are simple: to celebrate what they have won, but do not let things become conquer your home. As one of my friends said, "Ken, keep an eye on the donut, not the hole." VMware is a war booty, but should be preserved and appreciated on their own.

As a "booty", what exactly does bring VMware Dell?

VMware acquired its own group of companies, including two awards: Desktone and AirWatch. VMware is also the clear market leader in both automation systems data center management and cloud computing. See Figures 1 and 2.

Figure 1: IDC 2014
Figure 1 shows the four main leaders in the market for the management of cloud computing systems for the years 2012 to 2014. You can see that VMware has a firm grip on the top spot.


Figure2.png
Figure 2
And shown in Figure 2 the results of market research IDC for data center automation is. Monitoring key VMware in this space with IBM losing about half of VMware.

2014 VMware total turnover was just over $ 6 billion, with net income of $ 860 million, with 18,000 employees.

It was the launch of VMware in 1999 with its first product brought virtualization to the x86 computing world. Since then, VMware has dominated the market for large servers and virtualization in the center of the cloud and software-defined data. It is one of the most recognized in the world of data center technologies.

EMC is not left behind in the technology industry with $ 24.4 billion in total revenue in 2014, $ 2.7 billion in net income and 70,000 employees themselves.

Dell numbers are also important. For fiscal year 2013, total revenue was $ 56.9 billion and $ 2.37 billion in net income to 108,000 employees.

Seeing the figures for the three companies, one has to wonder if the purchase price of $ 67 billion has come. I'm not a financial wizard, but it would take a lot of convincing for me to believe that 30 billion gross income of $ EMC and VMware is somehow the value of $ 67 billion that had taken catch them. I think Michael Dell and the company can make it work. Unfortunately, this will mean an important technology in the firing range of 30,000 employees. I hope you are not based in the US, everything.

The US labor market appears to be a favorite punching bag for high-tech companies that make big blunders financial return leg after the dismissal of US workers. Buying EMC was not a mistake, but the inflated price for employees will come with costs.

VMware is an excellent complement to other Dell offers. Dell outgoing foresee complete packages using EMC storage, Dell servers and VMware. I hope that the same data center solutions under the Dell brand and ultimately data center Dell arising married life. I do not be surprised to see the Dell data centers that offer set, go style cloud environments for businesses.

Skip the "cloud-in-a-box" or "center-in-a-box data" offerings when Dell can offer a full computer that is similar to S3 and Amazon AWS. Hopefully VMware leadership positions in data center automation and management space cloud computing systems, which are easier to buy and use cloud computing for startups and established companies that want to make the leap.

In my opinion, a solution from Dell, EMC, VMware is a very good thing. It was a good buy for Dell and Dell booty - VMware and all.

What do you think of buying Dell EMC and VMware? Do you think that's a good thing? Are you leaving customers with more questions you think? Tell me what you think.

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