Partners on Edge as Dell/ EMC Merger Approaches Completion

M&A Merger

This Wednesday marks a historical moment in the IT market as Dell and EMC finalise their merger (worth approximately $67bn), following regulatory approval from China. The new company, named Dell Technologies, will start working as soon as the merge is complete.

“This is an historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data centre, converged infrastructure, hybrid cloud, mobile and security”, says Michael Dell, chairman and CEO of Dell Technologies.

“Our investments in R&D and innovation, along with our 140,000 team members around the world, will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes”. EMC’s shareholders will get $24.05 per share in cash, the companies added. EMC stock symbol will be suspended from trading on the New York Stock Exchange and will be replaced with a new symbol – DVMT. Trading will also begin September 7.

Concerns regarding Channel conflict between Dell and EMC partners have surfaced after Rupert Mills, managing director of Dell Premier partner Krome Technologies warned there could be a five-month period of “semi-chaos” in the Channel if the enlarged vendor fails to manage potential conflict between the two sets of partners correctly.

The Channel programmes won’t officially merge until February 1st but managing conflicts of interest between partners will be essential in the early days of the newly merged company.

Currently Dell is predominantly a direct organisation whereas EMC is more Channel focused. Initial concerns from partners in the market surround ongoing support and new processes for identifying opportunities.