Dell said in an interview with Bloomberg Television at the VMworld conference in Las Vegas that one of the things that he had seen with all his business cocktail mixing is that customers actually don’t want to have more partners – they want fewer..
“We’ve seen really a fabulous response – revenue synergies greater than we thought, coming faster than we thought. Dell, EMC, VMware go together like peanut butter and chocolate,” he said.
Dell is facing pressure from cloud providers such as Amazon and Microsoft and merged with EMC last year to bring together two traditional hardware companies in one of the biggest corporate tie-ups in history, valued at about $67 billion when it was announced. As part of that deal, Michael Dell also picked up majority ownership in companies such as VMware, whose virtualisation software lets businesses cram bigger workloads onto servers. VMworld is an annual event that features that company’s latest products.
One of the issues that analyst said at the time was that it could mean that customers might not like having the “one-stop-shop” that Dell was offering. After putting all your eggs in one basket is never sensible, unless you like omelettes.
Dell is saying the opposite and customers prefer the simplicity of dealing with a monolith for everything.