Dell Technologies was formed as a result of the merger that happened between the Dell incorporation and the EMC. The Dell incorporation is a multinational company that is named after its founder Michael Dell and is based in Round Rock, Texas. The company develops, sells, repairs and supports computers and technology related products.
Until recently, Dell incorporation used to conduct business on its own till it took the step to have a merger with EMC. The founders of EMC, Richard Egan and Roger Marino who took up the letters of their second names to form the company name. This was back in the year 1979. The organization has its headquarters in Hopkinton, Massachusetts, United States. The merger brought about different reactions since the Dell incorporation was known to be of a lower value as compared to EMC which meant that the Dell could not buy over the EMC. However, the Dell incorporation still took up the $67 million deal and merged with EMC which is more valuable compared to itself. After the merge, EMC changed to DELL EMC, which has its president as David Goulden. According to the founder of Dell, Michael Dell, the merge was to introduce the Dell Technologies to another level of data configuration, data transfer, and cloud computing.
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So as to achieve the objectives for the merger, various changes took place, and others are still being implemented. From the year 2013, you will find that there was a decrease in the PC sales of the Dell technologies. The merger is to improve the sales by having the PC's servers and storage in the cloud. This is because Dell competitors such as Lenovo and Microsoft have their technologies upgraded which meant that Dell had to improve theirs as well. From this, it indicated that their companies’ profits would be boosted after the merger and be able to pay off their debts.
DELL EMC will be seen to dominate the data centre. The idea of the merger is to integrate the two companies’ technologies so as to come up with the best outcome. After the acquisition, Dell became the largest player in the storage industry which means that many of the enterprises will look forward to setting up Dell technologies as their primary facility in their day to day activities. Other than this, it means that there will be growth in cloud computing which makes it easy to keep the data private and secure for businesses.
From a negative perspective, the merger is set to lay off approximately 2000-3000 employees of the organization as to try and save up in some costs. Dell had previously recorded a case of layoffs for their employees when Dell incorporation went into the private sector. After the merger, both EMC and Dell incorporations have had to lay off more of their staff so as to rebrand their organization. This has led to many of the people losing their source of income. In this case, many of the people did see the merge as not the best decision that the two presidents made.
Dell Technologies has acquired the selling power, and the combination of the two well-known companies in the sector has brought about trust to the users. The creation of speed computing, cloud storage, and server-based computers has made the technology to match quite competitively in the market. In conclusion, the merger has brought about both negative and positive outcomes. Many of the people do not see the merger enabling Dell technologies to match up to their competitor's strategies, but we still see the strides that the merge is making.
