It turned out as another big deal in the tech industry that computer giant Dell is acquiring Data Storage master EMC Corp for a whopping $67 billion. It has been seen that this deal came out as the third largest acquisition across various sectors that is looking for blooming the saturated market of sticking to PC to shadow with some cloud based services. Expansion for Dell was required as it is now stepping into the courtyard of IT services with this whopping amount of deal.
This multi-billion merger of two giants in the market where the two traditional companies one selling hardware, storage and other Information technology to the other companies, most precisely in the world of social, mobility, analytics and cloud (SMAC), Internet of Things (IoT), e-commerce, social networking, 3D printing and drones.
The deal which was announced on Monday seemed to impact the market generation and profit at par.
EMC apparently has a strong storage market in India and globally. On the other hand, Dell which is the second largest PC maker in the Indian market accounts to 21.6% shares.
The market is expected to witness further growth due to increased storage demand from e-commerce companies, healthcare and online educational institutes coupled with the traditional verticals, in the coming quarters, the report said. For instance, in financial year 2014-15, Dell won a deal with e-commerce company Flipkart to deploy its PowerEdge servers.
Sanchit Vir Gogia, chief Analyst and CEO of Greyhound Research, said. “The India market at this point of time is opportune for a Dell-EMC deal to take place, considering India is still a host to large number of organizations that are yet to shift workloads to the cloud. The deal would put the company in a sweet spot as they would be providing end-to-end infrastructure in terms of both devices and storage.”
On the note of concluding his views about this merger Gogia said “In order to sustain the cost of the merger, Dell can look at workforce cuts. India specifically has substantial workforce under Dell, the consolidation of offices might cause disruption”.
