Michael Dell - CEO, Dell embraces Joe Tucci - CEO, EMC Corporation on stage during EMC World 2016
Michael Dell believes Dell’s upcoming multi-billion dollar acquisition of EMC will see the combined tech giant better grapple with the growing digital demands of the world.
As outlined during his keynote address at EMC World 2016 in Las Vegas, the founder and CEO believes the merger will no only create “the next great technology company”, but will help “pave the way to the future” for customers and partners.
“Our future is one that will be defined by technology that is so powerful, it will be difficult to comprehend what is possible,” he said.
“Think back to 15 years ago in 2001. The iPod was just introduced while Intel began shipments of its first 64 bit processor. The industry was at the very beginning of a new model for technology delivery, at the start of a combination of computing power, mobility and software that would change everything.
“Today, these are relics of the past better served in a museum because the force from the exponential growth in bandwidth and storage grows around 10x every five years.”
As such, Michael Dell said the miracles of 2001 appear alien to the connected world of today, which is “1,000 times better” and in another 15 years, in the year 2031, it’ll be another “1,000 times better" again.
Why EMC?
With Dell - who will rebrand to Dell Technologies following the merger - front and centre at EMC World 2016, as a Diamond Sponsor - alongside Brocade and Cisco - Michael Dell subsequently dived into where EMC fits in the digital world, a world flooded with devices and data.
By 2031, the IT chief believes the eight billion connected devices in the world will grow to “perhaps 200 billion more”, representing 25 times the number of people on the planet.
“This will create masses of new information, and using this information in real-tine to build a better world is the challenge our generation is facing,” he added. “We are at the true beginning of an intelligent world, with the Internet of Things, processing power and connectivity only improving.
“We are witnessing the next industrial revolution and the next quantum leap in human processes.”
For Michael Dell, “work, learnings and play” will be redefined in the coming years, opening new ways of living and doing business for the world.
“We are staring at indefinite possibilities, from the Edge to the Core to the Cloud,” he said. “Applications and smart devices mean the datacentre infrastructure must be re-architected in a different way.
“As such, Dell and EMC will be a major Cloud infrastructure company. We’re ready to go to the Cloud with you.”
But at the same time, Michael Dell was quick to remind attendees that the combined company was “standing squarely in the present”, acknowledging that the overriding priority for many business leaders continues to centre around keeping ERP and email streams running "reliably and cost effectively" through traditional IT processes.
“There is a lot of pressure on CEOs to accelerate the pace of innovation and stay completive, and who knows where the next Uber and Tesla will show up,” he said. “We are ready to invest and lead the way in this market and will combine Dell and EMC to be the best industry partner to help customers and partners navigate this journey.
“Modernising IT is about becoming more agile, more efficient and easier to manage - which will create your digital future.”
With both companies complimentary in terms of technology and capabilities, Michael Dell said that together, Dell and EMC are leaders in servers, storage, virtualisation, Cloud infrastructure and security.
“Nobody is more relevant to the datacentre or can add as much value as Dell and EMC,” he claimed. “We are in the best position to reinvest our savings into the next generation with our core technologies such as VMware, VCE, Virtustream, Pivotal, RSA and SecureWorks all wrapped in world class consultative services from EMC, plus the scale of Dell’s pro-support plus.”
Channel impact
As ARN questioned in October 2015, the industry remains unsure as to whether the merger will be a channel friendly move however, as one channel-centric tech giant becomes devoured by a traditionally not so friendly partner player in Dell.
“Although there will be some product overlaps coupled with questions on channel strategy, overall, the deal looks pretty solid for the indirect channel,” said Michael Diamond, Director of Industry Analysis, NPD Group at the time.
But with the channel still amidst a global guessing game, Michael Dell said the onus is now on the merged company to utilise the “horsepower” of its partners, to better deliver solutions and “extend our reach around the world.”
“Together we can fuel innovation across combined portfolios and customer segments,” he added. “EMC is the most successful company in the world at incubating new technologies and we can now back this up with Dell’s global supply chain.”
When discussing scale, Michael Dell said the company will have greater reach and access across suppliers, partners, researchers and customers, including the VMware brand.
“To put it simply,” he concluded. “This merger offers the best of innovation delivered with the highest of quality.”
James Henderson is attending EMC World 2016 as a guest of EMC.
