E20-260 history - Specialist ? Implementation Engineer, VPLEX Updated: 2024

Dell's announcement to buy storage giant EMC $67 billion solidifies the largest deal in the history of the IT business, creating in its wake a channel behemoth set to dominate the enterprise IT market.

Dell's announcement to buy storage giant EMC for $67 billion solidifies the largest deal in the history of the IT business, creating a channel behemoth set to dominate the enterprise IT market. The landmark deal transforms the onetime PC maker, created in Dell founder and CEO Michael Dell's dorm room, into a $90 billion computing force. The deal will enable Dell, the No. 2 server maker, to leverage EMC's dominance in the storage market, setting up the Round Rock, Texas-based company to take on rivals Hewlett Packard Enterprise, Cisco and Oracle as well as upstarts such as Nutanix.

The deal, in which Dell will offer EMC shareholders $33.15 per share, includes EMC subsidiary VMware as a tracking stock that amounts to about $9 per share. Partners are calling the EMC acquisition by Dell a "dream deal," with the belief that it will energize sales for partners, up data center IQs and boost bottom lines.

CRN is covering the deal from all sides. Check here for the latest news surrounding this blockbuster, as well as analysis and exclusive takes from Dell and EMC's biggest competitors.

News & Analysis

• Dell Promises 'Seamless' Deal Registration For Partners On First Day After EMC Merger
• 5 Cultural Questions EMC Employees Are Asking About Life At Dell
• Dell Channel Chief On Taking Share From HP And The Plan To Unify The Dell And EMC Partner Programs
• Dell's Cheryl Cook: Still No Decision On Dell-EMC Channel Leadership
• EMC Puts Moratorium On Solution Providers' Switching Distributors Amid Pre-Merger 'Crazy Behavior'
• EMC Shareholder Vote On Dell Deal Set For July 19
• Resurgent VMware Stock Pulls Value Of Dell's EMC Acquisition Higher
• Are Politics Delaying Chinese Antitrust Approval Of Dell-EMC Deal?
• Q&A: EMC's Jeremy Burton On Dell's EMC Buy, VCE, Cisco And NetApp
• End Of An Era: 15 Scenes From EMC World 2016
• VMware CEO Gelsinger 'Categorically' Denies He's Leaving, Says Michael Dell Wants Him To Stay
• Sources: CEO Gelsinger To Step Down After Dell-EMC Deal Closes, VMware Issues Denial
• Q&A: EMC's Chris Riley Talks Sales Strategy And Future In Face Of Looming Acquisition By Dell
• EMC VCE Chief On The Impact Of The Dell Deal, Cisco Networking And The Hyperconverged Battle With Nutanix And SimpliVity
• EMC's Ambulos: No Decision On Who Will Run Dell Technologies' Channel After Merger
• EMC Says Partner-Led Sales Are Booming, But Must Change, In Run-Up To Merger With Dell
• EMC World: Dell Technologies' Channel Program Will Look A Lot Like EMC's, Says EMC Channel Chief
• EMC Exec: Michael Dell Is Avoiding Networking 'Collision Course' With Cisco
• EMC World: David Goulden Lays Out EMC's Private, Public, Hybrid Cloud Strategy
• Michael Dell On Dell-EMC's Storage Overlap, Future Acquisitions And The Blockbuster Deal's Channel Impact
• EMC World: Michael Dell Says Dell-EMC Is Gaining Ground Against Shrinking, Less Innovative HP
• EMC World: Tucci Passes Torch To Dell
• Dell Names EMC Channel Veteran To Software Channel Post
• VMware CEO Gelsinger Sees Dell-EMC Synergies, Shares Jump On $1.2B Share Buyback
• EMC Channel Partners Holding Off On Signing Up With Dell, Risking Future Opportunities
• EMC Q1 Earnings Call: What Partners Need To Focus On
• EMC Partners Face New Competitive Threat From Dell Partners Getting Into EMC Enterprise Game
• EMC Vs. Dell Top Executive Compensation: How Do They Compare?
• Michael Dell: EMC's Elias Will Lead Services, IT After Merger
• EMC Saying Goodbye To 'Federation' Tag, Tries To Reassure Employees Ahead Of Dell Merger
• Partners: Dell's Investing In The Future; Declining Revenue, Loss Are Not Concerns
• Report: Dell Close To Deal To Sell IT Services Business To NTT Data
• Dell Working Capital Program Tops $5B, Partners Use Cash Flow To Drive Growth
• CRN Exclusive: Dell Channel Chief Cheryl Cook On Doubling Enterprise Incentives, Increasing Premier Ranks And EMC Integration
• Partners Cheer Dell's Steady Hand In EMC Exec Integration Effort
• Partners See Big Enterprise Opportunity With New EMC All-Flash VMAX And DSSD
• Report: Banks Close To Finding Investors For Dell-EMC Acquisition Debt
• Dell Warns Investors VMware Share Decline Will Impact Final EMC Deal Price
• Report: Dell Hits Financing Hiccup In Blockbuster $67B EMC Acquisition
• EMC's Howard Elias On Prospects For Winning New Customers After Dell Merger: 'Bingo!'
• Dell's Regional Sales Reorganization Allows Partners To 'Work More Closely' With The Vendor
• Team Players: 7 Things The Execs In Charge Of The Dell-EMC Integration Want Employees To Know
• CRN Exclusive: Dell Revives EMC Sales Pact
• Tucci, Dell Pin EMC Growth Hopes On Virtustream
• Michael Dell Tries To Reassure VCE Partners, Customers As Dell's EMC Acquisition Looms
• Michael Dell And Joe Tucci's Call To Arms For EMC Sales Force: 'The Opportunities Are Massive'
• Michael Dell To Keynote EMC World
• EMC SVP Tries To Convince Employees: 7 Reasons Dell Deal Makes Sense For Us
• Dell Discloses Quarterly Revenue Decline, $7.7 Billion Cash Commitment For EMC Buy
• Dell Partners Say New EMC Reseller Agreement Would Smooth Road To Acquisition
• Dell Partners: Amid EMC Deal Turmoil, We Just Need To Keep Our Eye On The Ball
• Investor Khosla Says Dell-EMC Merger Will 'Set Back Innovation'; Partners Unmoved
• 10 Things EMC Employees Want To Know About The Dell Merger
• Dell And EMC Set Up Merger Management Office To Integrate Teams
• Partners Confident Dell-EMC Deal Will Be Completed, Unfazed By Reported Tax Concerns
• Partners: Dell's Reported $10B Asset Sale Would Help Focus Company After EMC Buy
• Dell Eyes Single Channel Program After EMC Acquisition
• Tucci On Dell-EMC Deal: 'I Am Confident Deal Complexities Will Be Worked Out'
• Scenes From Dell World 2015: What Will Be After The Deal With EMC?
• CRN Exclusive: Dell's Marius Haas Gives The Inside Story Of EMC Deal And Its Impact On Cisco, VMware
• Joe Tucci: 10 Things You Need To Know About EMC, VMware, Virtustream And Dell
• Dell World Preview: Can Partners Expect Answers Around EMC Acquisition?
• Michael Dell: EMC Acquisition Sets Stage For 'Much Stronger' Relationship With Cisco
• 6 Key Takeaways For Partners In Dell's Tech Adoption Index
• CRN Exclusive: EMC's Jeremy Burton Discusses Dell Bid, Cisco Relationship, And Customer Choice
• Dell Compellent Vs. EMC VNX: History Shows Dell Can Manage Multiple Storage Platforms
• Dell's Rory Read: EMC Integration Will Be Done 6-9 Months After Acquisition Closes
• Michael Dell: Dell-EMC-VMware Is A 'Dream Combination' To Drive Growth
• EMC CEO Tucci: Dell 'Had Nothing' To Do With Planning For New Cloud Services Unit
• Forget EMC-VMware Cloud Services, Dell Teams With Microsoft On Azure-In-A-Box
• EMC's Tucci Attempts To Calm Investors As VMware Shares Plummet
• VMware Shares Fall Further, CEO Acknowledges 'Volatile' Time For Investors
• Michael Dell To Partners: EMC Acquisition Would Be Difficult Without You
• Tucci, Top EMC Execs Stand To Collect Nearly $150M When Dell Deal Is Done
• EMC Partners Rush To Dell World, Dell Foes Are Becoming Dell Friends
• Venture Capitalist Says Dell-EMC Deal Spells 'Turmoil' for Channel, Customers
• Partners Embrace Dell-EMC Deal Creating Channel Behemoth, Welcome Enterprise Push
• Done Deal: Dell Buys EMC-VMware In $67 Billion Deal, Partners See New World Enterprise Order
• Michael Dell On EMC Deal: Together We'll Be 'Even More Powerful'
• Cisco, EMC Pledge 'Complete Commitment' To VCE In Wake Of Dell Deal
• Michael Dell: EMC Acquisition Sets Stage For 'Much Stronger' Relationship With Cisco
• VMware CEO Tries To Calm Partners (And Investors), Says Dell-EMC Won't Change Channel Focus
• VMware Shares Hammered After Dell-EMC Deal Unveiled, Analyst Warns Of 'Nightmare' Scenario
• Michael Dell On EMC Deal: Together We'll Be 'Even More Powerful'
• Partners Embrace Dell-EMC Deal Creating Channel Behemoth, Welcome Enterprise Push
• Report: Dell Set To Buy EMC In $65 Billion Deal, Biggest Tech Merger Ever Will Include Go Shop Provision
• Report: Dell Will Offer $33 Per Share For EMC, Deal Could Come As Soon As Monday
• Report: Dell In Talks To Buy EMC, Partners See Potential For New Enterprise Powerhouse
• Dell Buys EMC: Top 10 Partner Takeaways
• What Will A Merged Dell-EMC Look Like?
• Bad Blood' From Storage Sales Divorce Hangs Over Dell-EMC Sales Teams
• Could Dell-EMC Deal Push Lenovo To Acquire IBM's Storage Business?
• Would A Dell-Owned VMware Throw Monkey Wrench Into Dell-Microsoft Relationship?
• How Will Dell-EMC Blockbuster Affect The Public Cloud?
• Partners Predict Big Opportunities From Dell-EMC Deal

The Competition

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Dell Computer EMC

Dell is positioning the new Clariion CX600, which EMC unveiled this week, as its high-end array, and using it to enter the heterogeneous Unix/NT enterprise space, said Matt Brisse, Dell product manager for the new array, called the Dell/EMC CX600.

Dell will also target 100 percent Unix shops for the first time with this array, Brisse said.

"Dell has a commodity-based sales model," he said. "We can bring a value to those customers, where before they could only use proprietary or monolithic products. . . . Traditionally, Dell has a maniacal focus on costs. Now we can bring this to the Unix market."

While Dell currently offers NT and Linux servers, it does have the storage management software capabilities to leverage in mixed Unix/NT environments for a seamless user model, Brisse said.

Eighty percent of Dell's systems consultants are now Unix-certified, thanks to training and other support from partners such as EMC, Brisse said.

Consulting, planning, design and implementation services for the Clariion will be done by Dell-badged employees or, if customers prefer, personnel from third parties such as EMC, said Brisse. Dell employees are currently going through thousands of training sessions each day, including mandatory Unix training, leveraging EMC procedures, he said.

Further cementing the Dell bond with EMC is the first public acknowledgement of a manufacturing arrangement between the two. EMC executives this week said an entry-level version of the CX600 is planned to be introduced six to eight months later. The entry-level model will be manufactured by both EMC and Dell, but EMC's solution providers will be tapped to resell the EMC version.

Solution providers are concerned about Dell's low-cost push into the enterprise and how that will affect their EMC business.

The problem is not just that Dell comes in with lower numbers, said Hope Hayes, president of Alliance Technology Group, a Hanover, Md.-based EMC partner. It is more a case of how the vendor combines products and moves margins between various products to compete in the storage space.

"We see customers say they want to buy Dell servers or other products," Hayes said. "They say they also want disks. We can bring in the disks. But if Dell hears of the deal, they will come in and move things around to make the numbers. You can never beat Dell on price."

One solution provider who requested anonymity said the Dell model is driving prices down and putting pressure on margins.

"We focus on value, so Dell's model is contrary to ours. Yes, you can argue that you can make it up on value services. But we like to get margin on the hardware, too. When [Dell's in the picture, it becomes more of a price-driven scenario than a value-driven scenario. The lower end you get, the more formidable the competition with Dell.

At the lower end, deals are more margin-driven anyway, the solution provider said. "The trick to competing with Dell is know when to walk," he said. "If the price is the sole determining factor, it's hard to compete."

Short-term spiffs and special pricing to Dell from EMC shows that EMC's direct guys don't understand marketing, said another solution provider. "Sales people are coin-operated," the solution provider said. "But what about us? We are always trying to win the direct guys' hearts. We bring them into accounts. But they can make more money with Dell. Sure, EMC is saying it's moving into the channel. But the biggest beneficiary to that is their Dell relationship."

Not all solution providers agree that EMC's relationship with Dell hurts the channel.

James Kernan, president and CEO of Networks Plus Technology Group, a San Diego-based solution provider, said his company resells Dell products, including the EMC-made Clariion storage arrays, and even does subcontracting for Dell on services such as on-site consulting, design, installation and support. "This happens especially if we are in the account and create the opportunity for Dell," he said.

It helps Networks Plus that not many people resell Dell, said Kernan. "We actually make more margin on Dell than with many so-called channel-friendly vendors," he said. "If you sell Dell as a solution instead of as a single box, it works."

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