Eight months ago, in Septem­ber 2016, the $67B

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merger be­tween Dell and EMC was com­pleted. It was the tech in­dus­try’s big­gest merger ever, done against the back­drop of dis­rup­tive change in the tech in­dus­try, with the merg­ing com­pa­nies rep­re­sent­ing the old or­der rather than the new one.

Most merg­ers in the past in tech have not been suc­cess­ful and the larger the com­pa­nies in­volved, larger are the stakes and slim­mer are the chances of pulling it off.

One undis­puted trend in en­ter­prise IT is that pub­lic cloud ven­dors (such as AWS, Mi­crosoft, Google) are eat­ing the lunch of tra­di­tional IT in­fra­struc­ture play­ers like IBM, Or­a­cle, HPE, and Dell EMC. Pub­lic cloud is the big­gest threat that Dell EMC has to face up to. Michael Dell men­tioned in his key­note that pub­lic cloud is twice as costly than on-premise, ev­ery­thing can­not be done on pub­lic cloud, he re­ferred to it as the ‘boomerang ef­fect’. Dell EMC’s best re­sponse to this threat is to of­fer a range of IT in­fra­struc­ture con­sump­tion mod­els on pay-for-us­age ba­sis. The com­pany does not plan to of­fer a pub­lic cloud ser­vice yet; it may even not be the best com­pet­i­tive ma­neu­ver. But the threat of pub­lic cloud re­mains a big one.

Even though it is too early to pro­nounce a ver­dict, we can be­gin to catch some early sig­nals on the suc­cess of the merger based on the con­tent, mes­sages, and the fla­vor of con­ver­sa­tions at DEW this year. Dell EMC has be­gun its jour­ney well, packed the right stuff, started out in the right di­rec­tion, with seem­ingly the right maps and weather de­tails. Thumbs up on this one, at least for now. Dell Tech­nolo­gies fam­ily of busi­nesses is poised well to de­liver mod­ern and se­cure IT in­fra­struc­ture across the edge, the core, and the cloud to serve va­ri­ety of com­put­ing work­loads. With the sheer breadth of its prod­uct port­fo­lio, the re­newed part­ner strat­egy, the net­work of global al­liances and their so­lu­tions port­fo­lio, and the con­tin­u­ing in­vest­ments in R&D, it is ex­pected that Dell EMC is out­voted by its cus­tomers.

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