DELL is buying EMC. This is an old news. You already know this. There are many business reasons Dell is buying EMC. EMC is the number one storage vendor and a big cat of NASDAQ. One key business justification is to get into Enterprise market with enterprise class product lines and second big reason is break into cloud market utilising dominant presence of EMC. Have you rationalised your opinion on what Dell storage product line likely to be once merger is complete. There are many argument in for and against of various combination of storage line Dell will come up. Let’s look at current product lines of Dell and EMC.
Dell Current Product Line:
EMC Product Line:
Software Defined Storage
Other Partnership and Products of EMC
EMC Vblock Systems – VCE is a technology partnership which EMC plays major role to deliver converged cloud solutions for midrange to enterprise client. Converged Infrastructure technology that provide virtualization, server, network, storage and backup, VCE Converged Solutions simplify all aspects of IT.
EMC Hybrid Cloud- Federation Enterprise Hybrid Cloud for delivering IT-as-a-Service. With thousands of engineering hours, the Federation brings together best-in-class components from EMC, VCE, and VMware to create a fully integrated, enterprise-ready solution.
VMware Partnerships-EMC Corp plans to keep its majority stake in VMware Inc. EMC, which owns about 80% of VMware, bought the company in 2004 for $700 million. VMware accounted for about 22 percent of EMC’s revenue of $23.2 billion in 2013. EMC and VMware share a cloud vision. Through joint product development, solutions, and services, EMC is the number one choice for VMware customers for storage, backup, security, and management solutions.
RSA Information Security division- RSA info security offers data protection and identity management.
Pivotal- EMC and VMware partnership to manufacture software and big data solutions.
Virtustream- EMC and VMware joint $1.2B acquisition of this brand to provide public cloud services.
Dell to discontinue Compellent after merger–make sense
There are too many eggs on the busket already. Would Dell continue to sell identical products in different name or stream line all products. Dell is after streamlining all products. It is well known by Dell loyal customer that EqualLogic will disappear from Dell product line at 2018. We learnt that in Dell partner’s conference. Then question will remain what will happen to Compellent? In current market place, VNX directly compete with Dell Compellent. But VNX has more customer base than Compellent. VNX is in market for almost 20 years and still growing fast. Compellent is in new shape and in market with SC series product line. But Compellent has frustrated its customer with poor performance and poor customer support. A very poor explanation and guidelines from Dell presales team on how to align Dell storage with business requirement.
Dell can offer customer will both VNX and Compellent knowing Compellent did not work from the beginning or Dell streamline its product and kill Compellent all together. Then promote VNX as it worked past 20 years and has a proven track record. Killing Compellent will disturb few already unhappy customer who simply wanted cheap SATA disks. But killing VNX will disturb wide range of customers and annoy them once and for all. Consequence of that would be losing customers to HP and NetApp which dell desperately wants to avoid and gain control of storage market. This way Dell-EMC will retain undisputed title of EMC as a number one storage vendor. This make sense for any non IT savvy walking on the street. I am certain and believe that Dell will discontinue Compellent serries all together. Protecting $67 billion dollar acquisition of EMC is more important than protecting $960 million acquisition of Compellent. It would obviously make sense for Michael Dell to kill Compellent and promote VNXas a sole mid range storage.