Crossroads: What the Dell - EMC merger means

Oct 14, 2015

For a long time the market perception of Dell has been that of a device/hardware centric company playing in commodities with low margins. EMC on the other hand and for the longest time, focused on its storage capabilities. Only recently has it been able to bring some key acquisitions around Documentum to provide the market with a compelling enterprise digital transformation platform instead of just using it as an upsell for its storage solutions. The marriage of the two will help Dell rebrand itself as a technology company that empowers digital transformation for the enterprise encompassing not just storage and end-points but also now through comprehensive enterprise information management - a critical piece to help organizations overcome the Big Data challenge.

 

Dell could have bought many point solutions at a much lower cost and tried to integrate them into a single platform or it could have built a digital transformation platform from scratch. However, with EMC what it gets instead is instant recognition in the market for enterprise grade solutions and it does not have to recreate the wheel. All this is contingent on Dell focusing the combined entity on software based digital transformation platforms rather than a continued focus on commodity hardware storage. There has also been a lot of buzz about Infrastructure-as-a-service and what Dell and EMC could together provide to the market. IaaS too is getting crowded and to move away from IaaS commoditization, Dell-EMC would arguably be better off providing a message around deployment flexibility (on-premises, cloud, hybrid) for enterprise platforms rather than being pigeonholed as an infrastructure provider.


Mukul Krishna

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