Tag: vmware

Dell EMC’s key UK partners are testing a scheme where they can buy VMware software from the vendor.

The big idea is that the vendor will make sure they can deliver a more complete solution by allowing its level one titanium and titanium black partners get access to VMware software.

Apparently, it is something the channel wanted so partners could combine that technology with the hardware it is selling from Dell and EMC.

The latest move will not have any impact on the VMware channel partner programme and Dell EMC’s distributors have been briefed on the plans and have reportedly given it their blessing.

Michael Collins, senior vice president for Dell EMC Channel Business in EMEA, said that it had always promised partners that it would be simple, predictable and profitable and it had to respond to the demand from its largest partners to make it simpler to add VMware to a converged solution sale.

The scheme is in pilot mode for the second half of this year and being run in the UK and France in Europe as well as the US, Canada, Mexico and Brazil with plans to potentially extend it to other countries in the future.

Most of those partners that will be eligible to buy VMware through Dell EMC are already selling the virtualisation software but will now have more choice about how they pull it all together.

Tin 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.

A furious EMC president of global sales Bill Scannell told his sales teams to stop making stuff up about the company’s coming merger with Dell.

According to Channelnomics  Scannell told his staff not to “veer from the script” after the $67 billion acquisition by Dell was announced earlier this month. He slammed some of his staff for saying the wrong thing to customers.

He said that he had seen a couple of things happening in the field where people are veering from the script and kind of making things up.

“That’s not healthy, that’s not going to allow us to make this a painless and very successful merger… Understand what you can and can’t say now prior to the closing, realising this could be another six to nine months before we get the regulatory approvals and the shareholders’ sign-off to do this merger.”

Scannell told his staff to focus on quarterly business and exceeding customers’ expectations. They needed to sure they understand what we’ve said publicly about this acquisition and that it is all is going to be great.

If the deal goes ahead, EMC will go private but VMware – in which it owns an 80 per cent stake – will remain a publicly listed company.  This means that EMC will not have to worry about shipping products at the end of the quarter to make the quarterly revenue numbers.

This is going to have huge impact on savings from inventory with EMC, Scannell said.