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DELL Acquisition of EMC is Beneficial for HP Enterprise

March 29, 2016
Posted On : March 29, 2016

Since the Dell’s acquisition of EMC for $ 67 Billion, the CEO of HP, Meg Whitman has taken several opportunities to claim that this deal will prove beneficial for HPE.

Whitman said, “we decided to get smaller while they got bigger. We decided to lean into new technology while they’re doubling down on old technology in a cost takeout play. They levered up while we de-levered [sic]. And we’re super-focused on being fast and nimble for our customers. So both strategies may work. I happen to like our hand better than the Dell-EMC hand “.

She also stated that IBM’s confusion over sale of its lower end server business to Lenovo made HP to get more benefits and now the same confusion is being replicated by the Dell- EMC. Whitman added that HP is able to invest in innovation better than Dell and said that she will wait for things to unravel.

Given HP’s own M&A past, which includes some massive buys, some might even say that here Whitman might be in a glass house kind of scenario. Coming back to Dell, according to the recent Dell SEC filling it has been confirmed that both Dell and EMC has the ability to win in the competitive and fast-changing markets.
(Source: www.fortune.com)