Tag: EMC

Sarah Shields is Dell EMC’s channel queen

sarah-shields-new-620x350Dell EMC has confirmed that Sarah Shields has the top job running its UK and Ireland channel.

Shields ran the local channel for Dell and was facing off against Kevin Sparks her EMC counterpart. It is not clear what his role will now be in the glorious new empire. Dell says it will be making any announcement about his role in the future. We hope he does not get special projects, with an office in the lift.

She officially takes control in February and will head up a new Dell EMC partner programme. Of course, Dell says that its new cunning plan was built in “collaboration” with its “partners” that sell its stuff.

Dell EMEA channel overlord, Michael Collins claimed that resellers, integrators and distributors had seen “significant [sales] growth” under Shields over the past 19 months.

Shields joined Dell, from Gateway in 2008 and has run the consumer, online, SMB and enterprise channels. Before Gateway, where she was as European sales director she had been a business manager at Acer and channel manager at AMD.

Dell says diversification was the best thing he did

dellchannTin box shifter and CEO Michael Dell has said that moving away from grey boxes for a bit was one of his cleverer moves.

Talking to the assorted throngs at Dell World, Dell claimed the firm’s wider range of offerings and its EMC deal was a key to helping it thrive at a time when former PC rivals have faltered.

“In fact this last quarter we outgrew our competition and the last year to date all of our major PC competitors have declined while Dell is growing. We are the only one that is growing.”

He believes that the “physical reality is transforming into a digital reality” and firms that used to have a ‘physical businesses’ strategy must transform as well to stay afloat.

“This is what the best leaders are focused on,” he said.

Dell rejected claims that the firm would be overly distracted by its acquisition of EMC and the huge array of technology tools and products that it now owns. But nothing like that was happening.

Dell said the firm will still focus on the PC hardware space, as PCs were just as relevant now and in the future of connected devices and the burgeoning internet of things.

“PCs in all their various forms are deeply integrated into the computing, and this is especially so in the internet of everything and the innovation that is happening at the edge, and in another 15 years, we are going to have another 1000 times improvement.”

Dell spruces up its channel with EMC blood

Michael DellDell has named its new channel and sales executives and appears to be leaning on EMC bigwigs to improve its channel.

EMC channel chief Gregg Ambulos is now in charge of the North American channel, after EMC’s John Byrne was made global channel supremo in July.

Ambulos reports to Byrne, and his appointment came along with a host of other executive moves designed to streamline and unify the Dell Technologies sales and channel operations.

Byrne, who worked for AMD, is now the president of global channels and reports directly to Marius Haas, Dell COO and president of commercial solutions.

This looks like Dell intends to lean heavily on EMC’s channel expertise and moving towards partner-led customer engagements, similar to EMC’s programme.

Jim DeFoe is now the head of global distribution. DeFoe is a 20-year Dell veteran, and has spent almost all that time as vice president of global sales channels and programmes.

Cheryl Cook is now the head of partner marketing, reporting to Nina Hargus, senior vice president of global field marketing. Cook was the face of Dell’s channel operation after coming from Sun.

Kimberley DeLeon, another former AMD bod, was hired by Dell last January. She will be the head of global channel programmes at Dell Technologies,.

Randy Huey, also from Dell is now the head of channel strategy, Huey will lead channel strategy and planning. He and Byrne will map out plans for partner spending and coverage across Dell and EMC.

Pilar Schenk will be head of channel sales planning and operations.

Tian Beng Ng will be the head of Asia-Pacific and Japan channel sales. He has been with Dell 17 years, most recently as vice president and managing director, South Asia and Korea. Alvaro Camarena  is now the head of Latin America channel sales. Camarena has been with Dell eight years as executive director of Latin America channel programmess. Michael Collins will head Dell’s EMEA channel sales operation. The 14-year Dell veteran was most recently vice president of strategy and channel, EMEA.

Dell names top channel execs

michael-dell-2Dell has announced its regional execs to run its channel after completing the $60bn buy-out of EMC.

Most of the names are similar to those who ran Dell’s channel before.  In the Asia Pacific region is Ng Tian Being, who was veep of South Asia and Korea; for Latin America is Alvaro Camarena, who was exec director of channel programmes; and for EMEA it’s Michael Collins at least after January.

Collins was only given the channel role and replaced Laurent Binetti, who had been in the job for 30 years. .

Until then, both Collins  and Philippe Fosse (the current EMC EMEA channel head] will continue to jointly-lead the Dell EMC EMEA Channel business in their established roles.

Fosse was EMC’s EMEA East, before he moved into the position more than four years ago. Prior to that he was at HDS, Xiotech and further back in the annals of time he was at StorageTek.

He is yet to have a role in the glorious new Empire. He apparently has a job but it has not been “formally announced” yet.

The only EMC person to have a role announced is Greg Ambulos, who ran global channels for EMC and will control North America channels at Dell.

 

EMC warns that a further channel push could be a bad thing

emcEMC is warning investors that leaning on the channel once it is acquired by Dell could seriously damage its health or at least wealth.

EMC  does about 60 percent of its business through the channel, and is worried that an increased reliance on channel partners “may negatively impact” gross margins.  It told  the US Securities and Exchange Commission:

“As we focus on new market opportunities and additional customers through our various distribution channels, including small-to-medium sized businesses, we may be required to provide different levels of service and support than we typically have provided in the past. We may have difficulty managing directly or indirectly through our channels these different service and support requirements and may be required to incur substantial costs to provide such services, which may adversely affect our business, results of operations or financial condition.”

EMC has traditionally focused on high-end enterprise customers while Dell, its soon-to-be parent company, used its renowned supply chain to become a leader in the consumer, small business and mid-market arenas.

For EMC’s second quarter ended June 30, perhaps its last as a stand-alone, publicly traded company, EMC’s revenue was essentially flat year-over-year at $6.03 billion while its profit jumped more than 21 percent to $630 million or 29 centers per share.

The Dell-EMC merger, which will result in the creation of Dell Technologies, is expected to close before the end of October.

EMC votes to become part of the glorious Dell empire

legionnairesEMC has approved Dell’s $60 billion offer to become part of the glorious Empire in the largest technology merger ever.

The newly combined entity, to be named Dell Technologies, aims to be a one-stop shop for information technology sold to businesses. OF course they all say that, but this will be pretty big.

It will consolidate diverse products and services under one umbrella, including personal computers, servers, storage and networking equipment.  The only thing which could stick a spanner in the works is regulatory approval from China.

EMC Chief Executive Joe Tucci said before the vote that the board evaluated numerous options and decided that the merger with Dell is the best outcome.

Once combined, the two companies plan to help customers move to cloud computing, which likely would be a hybrid approach that includes both cloud and on-premises operations.

The deal will also let Dell exploit EMC’s “converged infrastructure”, to sell computing, storage and networking equipment as an easy-to-install bundle.

The deal will give current EMC shareholders a tracking stock for VMware shares. Consequently, the privately held Dell will issue quarterly financial reports.

 

Today is D-Day for EMC

michael-dell-2Today is the day that EMC shareholders vote to merge with Dell, or tell Michael Dell to go sling his hook.

The merger was announced last October and will create a more-than $70 billion global IT powerhouse with significant strengths from PCs to security and the high-end data centre.

EMC had been under pressure from shareholders to be broken up so being swallowed whole came as a bit of a surprise. The company’s enterprise business will be run from EMC’s headquarters in Hopkinton – a place in America somewhere –  while the rest of the business will be run from Dell’s house in Texas.

There is no guarantee that Dell will manage to convince shareholders. However, the signs are that it will be rubber stamped. The deal has received the seal of approval from two independent proxy firms, ISS and Glass Lewis, and hasn’t been the subject of any public investor unrest. But nothing is certain.  Dell’s Empire has a debt loading which makes my credit card bill look very small potatoes.

Still the deal is worth $62.3 billion.

Shareholders are being asked to approve the merger, vote to give huge “go away”  payments to top EMC executives as a result of the merger. This is basically giving $90 million to EMC Chairman and CEO Joe Tucci; CFO Zane Rowe; EMC Infrastructure President David Goulden; Marketing Chief Jeremy Burton and COO Howard Elias. They will only get the money if they bugger off and never darken Dell’s door again.

Dell himself is quietly confident that everything will go through on time. He thinks that the merger will be completed by October.

Channel partners positive about European changes

emcChannel partners across Europe appear to be an optimistic lot, unless you are talking about HP, according to figures gathered by beancounters at Context.

In the outfit’s ChannelWatch, channel partners generally approved of their distributers and even liked the move by Dell to buy EMC. If they were unhappy about anything it was the splitting off of HP.

Jeremy Davies, Context CEO and co-founder said that resellers were clear on their opinions, especially when it comes to how they rate their distributors where overall the verdict has been good.

The reaction towards distribution in the UK was particularly positive, with 40 per cent thinking their partners were ‘excellent’. That was higher than elsewhere in Europe, which in the case of France and Portugal had the lowest levels hitting the top mark.

The Context survey found more partners thinking of adding Dell to their lists in the next six months. However, HP is not doing so well with two thirds of respondents claiming that the firms split might make them less inclined to take on products in the future.

Dell flogs his software arm to the House of Elliott

elliotTin box-shifter Michael Dell is about to flog his software division to buyout firm Francisco and the private equity arm of activist hedge fund Elliott Management.

Dell needs to get rid of its software assets so that it can buy data storage company EMC for $67 billion. EMC owns a controlling stake in VMware and other software assets, so Dell does not need its own.

One of the things that Dell wants to off-load is Quest Software, which helps with information technology management and SonicWall, an e-mail encryption and data security provider. It is keeping Boomi, which is cloud-based software integration software.

The deal is expected to be formally announced this week, although it is possible that the whole thing could go tits up and never happen. Neither Dell nor Francisco are commenting.

Dell’s software division is not particularly profitable and Dell needs as much cash as he can get his paws on to reduce the debt he took on when took the outfit private.

 

IDC names the top storage types

storageThe former maker of expensive printer ink HPE is doing rather well in the storeage league tables.

Beancounters at IDC have looked at their quarterly enterprise storage numbers and found HPE is the top of a declining market.

The overall enterprise storage market was worth $8.2 billion in the first 2016 quarter, down seven per cent on a year ago.

HPE did share its top place with EMC but HPE nominally ahead at $1.42 billion, up 11 per cent year-on-year, with EMC making $1.35 billion n, down 11.8 per cent year-on-year.

Dell was third with $845.5 million, down 5.8 per cent year-on-year, and NetApp fourth with $645.5 million, down 15.6 per cent.

Thinks are set to change when Dell merges with EMC. If you add those two outfits figures together you end up with revenues of $2.27 billion, almost double HPE’s revenues for the quarter and more than three times NetApp’s revenues.

IDC’s Liz Conner, research manager, Storage Systems said: “Spending on server-based storage was up, spending on traditional external arrays continues to decline, while the nature of hyperscale business leads it to fluctuate heavily with that market segment seeing a heavy decline in 1Q16.”

 

Kicking Pat Gelsinger won’t quit

47187130.cmsThe word on the street has been that Pat “Kicking” Gelsinger is about to clean out his desk at VMware once the EMC/Dell merger concludes.

However Gelsinger apparently has his feet nailed underneath the desk to prevent easy removal, even if it has curtailed his kicking antics for now.

Speaking at the Jefferies Technology Conference Gelsinger  told the assorted Jeffs  that he denied that he was off to pastures new: “I categorically deny it, EMC categorically denies it, and Dell categorically denies it, so there is absolutely no merit or substance to the rumour whatsoever. My intention is to stay here and Michael Dell’s intention is that I stay here.”

Gelsinger met with Dell earlier this week at VMware’s internal R&D conference when his PR team sent him a text about the report of his departure. Gelsinger said he showed his phone to Dell, asked him “Is there something I don’t know and we got a laugh about it”.

Of course Dell could have been laughing in the same way that Game of Thrones villains do before they stick a knife into someone’s liver, but we don’t think Pat is due to go to any weddings.

Gelsinger added that recent exits from VMware were a sign of execs reaching new stages in their lives, rather than tiring of VMware. Some have teenaged kids. Others have closed 100 quarters in a row at public companies and want new horizons. Gelsinger also said VMware’s replacement executives were “experienced and hungry” so clearly they have not found the VMware canteen yet.

 

 

Dell’s EMC debt rising

emcTin-box shifter Michael Dell always knew that his outfit’s debt was going to be a bit high after buying EMC, but it is starting to look like it is getting heavier.

Dell’s debt was high after the company went private, but now it seems that the Wall St bond market will need higher interest payments to fund the deal. While there is still enough cash in the kitty to get hold of EMC, it means that there could be a fire sale of overlapping business soon after the sale takes place.

All this is because the weak quarterly results at Intel and the poorly received debt sale by disk-drive maker Western Digital are pushing up the costs of Dell’s coming debt issuance. Basically the bankers are a bit nervy about investing in hardware at the moment.

Dell’s ability to raise money through selling off some businesses is also suffering. His SecureWorks IPO is now priced at $14/share instead of the original $15.50 – $17.50 range, reducing the likely inflow of cash to Dell, and thus reducing its future debt needs less than it must have hoped.

All this could add tens of millions of dollars to Dell’s annual interest expense, something that Dell needs like a hole in the head. It is thought that to deal with the problem, Dell is going to have to flog anything not nailed down in the two companies. There are overlaps between the two companies which can be safely flogged off, but it is more likely that more cuts will have to be made.  It is expected that there will be large numbers of former EMC or Dell staff looking for jobs when the agreement goes through.

EMC ponders selling Documentum

emcEMC is looking to sell its Documentum software unit in a move that parallels Dell’s efforts to sell off assets ahead of the companies’ pending merger.

According to Bloomberg, EMC had agreed to a Dell plan to shop the Documentum software business to prospective private equity buyers as part of an effort to offset the cost of acquiring EMC. However it is equally possible that EMC wants the cash to buy something nice.

Few EMC partners sell Documentum. EMC partners work at the infrastructure level, rather than the application level with document management. Documentum software tracks corporate documents. EMC acquired the company in 2003 for about $1.7 billion.

Dell expects its acquisition of EMC to close between May and October. Dell has been flogging off assets to offset the cost of the transaction. The acquisition deal is worth around $60 billion. Dell intends to take on as much as $49.5 billion in debt in order to complete it.

It has flogged off Perot Systems business to NTT Data of Japan for about $3.1 billion and is trying to find a buyer for SonicWall security business and Quest software.  This should get it $4 billion.

 

EU gives Dell deal the thumbs up

Happy man portrait

Happy man portrait

Tin box shifter Michael Dell is going to be given unconditional EU antitrust approval for its $67 billion bid for data storage company EMC.

Dell unveiled the deal in October last year, the largest ever in the technology industry sector, and designed to enable Dell to better challenge rivals Cisco Systems Inc, IBM and HP in cloud computing, mobility and cyber security.

European Commission spokesman Ricardo Cardoso has so far said nothing, but leaks in Brussels [shurely that should be sprouts.ed] claim that the when the Commission gives its ruling on the deal by February 29 Dell will be a happy bunny.

 

Dell founder and Chief Executive Michael Dell took the company private three years ago with the help of private equity firm Silver Lake.

The computer maker has arranged a debt package for up to $49.5 billion to help finance the EMC deal, the second-largest M&A financing on record.

 

VMware share drop hurts Dell’s EMC bid

Michael DellTin box shifter Michael Dell is warning investors that the $14 billion drop in the market capitalisation of VMware is playing havoc with his attempt to get cash for EMC.

A Dell spokesman said the total value of the blockbuster acquisition has dropped by about $10 billion from its original $67 billion, to $57 billion.

In an SEC filing, Dell noted that “the market value” of the VMware tracking stock has “declined, thereby reducing the implied value of the stock portion of the merger consideration”.

On October 9, the last business day before the Dell-EMC announcement was made, VMware, 80 percent of which is owned by EMC, had a market capitalisation of $33.2 billion and a stock price of $78.65 a share. Now, its market cap is about $19.2 billion, and its stock price is hovering around $45.54.

A Dell spokesman said the EMC acquisition price of $24.05 per share was “locked, that doesn’t move, but because VMware has moved down, the value of the portion of the merger consideration linked with the tracker is going to be in that range of decline”. Whatever that means.