Dell, EMC, and VMware Walk Into A Bar….

Looks like Dell is buying EMC for $67 Billion, and that doesn’t include VMware.  At least not outright, Dell will become the majority stakeholder of VMware but not an outright owner.  VMware will remain an independent company after the Dell/EMC merger.

EMC did a pretty good job of being hands off with VMware.  In a way, that was the only option for them.  If EMC had created new features for their storage platform that only worked with vSphere or added features to the vSphere hypervisor that only worked with their hardware, the tech industry would have rightfully screamed foul play.  Early reports are indicating that Dell will keep their majority stock at arms reach.  That really is the best thing they could do in this particular situation.

$67 Billion is a LOT of money.  I can’t speak to EMCs storage hardware other than say several years ago it was a major pain in the butt to get a quote for a new SAN.  After we finally got it, it was very expensive and very complex to setup and maintain.  However by and large EMC’s gear is well regarded, at least in the “traditional” enterprise storage market.  I also can’t speak to Dell’s Compellent hardware.  But as a former Equal Logic customer and storage administrator, Holy Crap is that one platform that Dell needed to replace.  I expect the Equal Logic hardware to be phased out and replaced with EMC gear.  We may even see the Equal Logic name fade away, in some circles that name equals sub-par hardware and really buggy firmware.  It won’t be missed by this admin.

If the price for Dell to get back in the storage game (and get a nice shot in the arm with EMC’s other properties) is $67 Billion, so be it.  I hope it works out for them.  Knowing a good match for your company when you see it AND being able to purchase outright it is a rare thing at this level of the game.  That said, if I had $67 Billion to spend to revitalize my enterprise computing company, I’d have bought Nutanix or Pure.  Or both.  $67 Billion is a LOT of cash.