James believes an acquisition deal between HP and EMC is a “distinct possibility” as HP inches closer to its company split date in November. The two companies agreed, at least once before, and had more than a year’s worth of merger talks before giving up, mostly on the matter of price.
Channel partners of both companies said the deal makes sense and would be beneficial to them and it is looking like other analysts agree.
Such a deal would improve HP’s cloud portfolio with VMware and Virtustream services, while EMC and Pivotal would boost the converged infrastructure and analytics side of the portfolio. HP provide some good mobile tech.
HP is splitting the enterprise divisions from the PC and print side of the business, and is certain to have that done by Christmas. HP CEO Meg Whitman has indicated further acquisitions and so it is possible that EMC is on the table.
HP Enterprise of the new HP – will be a lot more aligned with the current EMC and VMW businesses in terms of end-market focus.
A united company is worth $2 billion more. HP would kill off its 3Par storage over time, and EMC would shelve its Content Management in favour of HP’s Autonomy.