* DELL has confirmed it will take over EMC for $67 billion. VM Ware will continue as a publicly traded company.
It now looks almost certain that Dell will announce it is taking over EMC today – a move that will cause ripples right throughout their respective channels.
The deal, said to be worth over $50 billion, is expected to be concluded either today or tomorrow, although EMC, being a listed company, will have to be offered to other prospective suitors.
A prospective suitor this time last year was HP, but HP Inc and HP Enterprise aren’t that interested any more.
For Dell, there are clear advantages to the acquisition. It has been building up its channel portfolio for several years now and at last week’s Canalys Channels Forum, senior executives said that at least 70 percent of its business was now going through two tier distribution. The acquisition will also put Dell into the top league, along with IBM and HP one and two.
Dell has also had a pretty smooth path when it’s taken over other countries, managing to successfully integrate them in a comparatively short period.
Obviously, there will be some consolidation involved and doubtless some people will be made redundant as part of the proposed takeover. But sorting out the channel implications will require some deft and delicate moves on Dell’s behalf. Reports suggest that EMC’s VM Ware division may itself be subject to either a sale or some equity investment.
After a spending spree that saw it spending over $7 billion software company Concur, German CRM giant appears to have decided enough is enough.
CEO Bill McDermott told a conference in Barcelona today that SAP is going to “step down” its acquisition efforts.
It had pledged to buy itself into a position of real power in the market, but according to a report by Reuters it was going to tuck itself into bed and that would probably put people to sleep.
SAP has seen some tough times in the recent past but McDermott believes it now has a business plan that will see it do reasonably well between 2015 and 2020.
SAP’s major competitors include Salesforce, Oracle and Workday and that market is becoming increasingly competitive.
McDermott’s strategy is to sell more of its products through the cloud, and that makes it just like every other vendor and therefore more vulnerable to competition too.
Major distributor Arrow Electronics said it has finalised the buyout of Computerlinks.
Computerlinks was majority owned by Equistone and announced its sale to Arrow back in August.
Now the deal has gained approval by European and US antitrust authorities.
Computerlinks had 700 employees operating in 22 countries and now Arrow has said it has created an integration team made up of senior staff from both companies to weld the two companies together.
The combined group will now operate in 33 countries worldwide and include a bigger professional services team.