What next for Dell EMC?

bag of money with money floating around it

Posted on Wednesday, January 31, 2018

When Dell bought EMC it was the biggest acquisition in corporate history. The $67 billion purchase involved significant borrowing, and the new joint firm is now looking at ways to repay debt and define the future of the business.

Is Dell EMC considering IPO?

The Dell EMC board of directors are due to meet later this month, and already two strategies are under consideration. First, there is talk of taking the company public again, just four years after Dell was repurchased by original founder Michael Dell.

Some sources suggest that the company may consider less extreme options, like the sale of the Pivotal Software division. This would bring in some much needed revenue to be used to pay down debt.

Perhaps it’s time to grow Dell EMC?

Other sources suggest that Dell EMC may instead consider additional purchases to strengthen their product portfolio. Directors are said to be reviewing a list of potential acquisition targets as way to boost cash flow.

Ongoing concerns about Dell EMC income means that the business may decide to diversify if they are to meet earnings targets.

What does this mean for existing Dell EMC customers?

In the short term, neither of these strategies will have much effect on Dell EMC storage users. The only potential issue will be if there is a decision taken to sell the storage hardware division for instance, echoing similar moves by HPE when they split their software and hardware units into separate businesses.

Fortunately, third party maintenance services provide robust protection against any uncertainty. No matter how the Dell EMC board of directors decide to proceed, a third party can continue to deliver the quality of service to which your business is accustomed – and to do so at a lower cost too.

Importantly nothing has yet been decided. It may be that Dell EMC decides to do nothing, continuing with the current business strategy. But it makes sense to consider all your available options just in case something significant does change.

To learn more about third party maintenance services for your Dell EMC storage arrays, please get in touch.