Dell purchased EMC for $67 billion is now official news. But do you think that Dell acquired EMC in order to destroy VMware, which was acquired by EMC in 2004?
HP CEO Meg Whitman, predicted chaos for Dell as it integrated EMC products and services into its current offerings. At the same time, Meg Whitman predicts that Dell will destroy VMware or will either extract all the profit out of it to fund Dell’s dreams.
Ms. Whitman also said that Dell’s ownership of VMware will send the masses running towards Microsoft for Hyper-V salvation, as they will stop trusting VMware products and services……interesting!
Mr. Mo opposes Meg’s prediction and instead feels that EMC, like Dell, is an empire builder, having purchased over 50 companies since 1996, belonging to storage, storage management, virtualization, services, security and content management. It purchased VMware as it wanted to take some share of virtualization market in its stance. However, it made it live the life on its own and with the same brand name.
Similarly, Dell will also make VMware live its own life and will just integrate its services to gain some market share. There is a possibility that it may use VMware’s profit share to invest in its other businesses. But it will never ruin the market of the virtualization leader, as by doing so; it will loose the customer base to Microsoft.
That’s a valid viewpoint!