Jul
02
2018
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Dell will soon be a public company (again)

Dell, which went private in one of the the largest leveraged buyouts in tech circa 2013, announced today that it will once again be going public through a relatively complex mechanism that will once again bring the company back onto the public markets with founder Michael Dell and Silver Lake Partners largely in control.

Dell’s leveraged buyout largely marked the final page in the company’s storied history as a PC provider, going back to the old “dude, you’re getting a Dell” commercials. The company rode that wave to dominance, but as computing shifted to laptops, mobile phones, and complex operations were offloaded into cloud services like Amazon Web Services, Azure and Google Cloud, Dell found itself navigating a complex environment while having to make a significant business transition beyond the PC era. That meant Dell would be beholden to the whims of public markets, perhaps laden with short-term pessimism over the company’s urgent need to find a transition.

The transaction is actually an offer to buy shares that track the company’s involvement in VMWare, converting that tracking stock into Dell Technologies stock that would mark its return as a publicly-traded company. Those shares will end up traded on the NYSE, around five years later after its founder took the company private with Silver Lake Partners in a deal worth roughly $25 billion. Silver Lake Partners owns around 24% of the company, while Dell owns 72% and will continue to serve as the chairman and CEO of the company. This move helps the company bypass the IPO process, which would remove the whole time period of potential investors scrutinizing the company (which has taken on a substantial debt load).

Dell said in its most recent quarter it recorded revenue of $21.4 billion, up 19% year-over-year, and over the past 12 months the company generated $82.4 billion of revenue with a net loss of $2.3 billion. The company said it has also paid down $13 billion of gross debt since its combination with EMC back in 2016. All this has been part of the company’s transition to find new businesses beyond just selling computers, though there’s clearly still demand for those computers in offices around the world. As it has expanded into a broader provider of IT services, it’s potentially positioned itself as a modern enterprise tools provider, which would allow it to more securely navigate public markets while offering investors a way to correctly calibrate its value.

Feb
02
2018
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Dell confirms it’s considering combining with VMware and other options in SEC filing

 This morning, Dell confirmed previously published reports in an SEC filing, that it is considering various options to possibly reorganize itself. Reports emerged last week suggesting the Dell board was planning a meeting to discuss options for dealing with the enormous debt it took on when it acquired EMC in 2015 for $67 billion. The SEC filing confirmed earlier reports that it was… Read More

Jan
29
2018
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Why the Dell rumors might have substance

 By now you’ve probably heard that the Dell board is supposed to be convening later this month to figure out how it might reorganize itself to deal with the mountain of debt it took on when it bought EMC in 2015 for $67 billion. The rumors began on Friday and involved a couple of possible scenarios including Dell going public or Dell buying the remainder of VMware (which I’m not… Read More

Nov
28
2017
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VMware expands AWS partnership with new migration and disaster recovery tools

 Remember how VMware was supposed to be disrupted by AWS? Somewhere along the way it made a smart move. Instead of fighting the popular cloud platform, it decided to make it easier for IT to use its products on AWS. Today, at the opening of the AWS re:invent customer conference, it announced plans to expand that partnership with some new migration and disaster recovery services. As Mark… Read More

Nov
02
2017
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VMware acquires VeloCloud as it moves deeper into networking

 VMware announced today that it was acquiring VeloCloud, a startup that focuses on cloud-based wide area networks (WAN), those networks that span a broad area across data centers or regions. The companies did not reveal the purchase price.
The news confirms a report that The Information first reported  yesterday.
The company appears to be an excellent fit as one of the primary use cases is… Read More

Aug
29
2017
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Seven moves that led to the VMware-Pivotal-Google partnership

 When VMware, Pivotal and Google announced a containerization partnership this morning at VMworld, it sounded more like the introduction to a joke — Google, VMware and Pivotal walked into a bar… But in fact, it’s probably not a coincidence that these three companies have joined together. They actually have a long and intertwined history — with former VMware co-founder… Read More

Aug
29
2017
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Pivotal-VMware-Google forge container partnership

 Pivotal, VMware and Google have teamed up on a containerization project that the companies say should simplify creating, deploying and managing container projects at scale. The companies are taking what is a set of open-source products and providing a commercial underpinning with the various parties in the partnership bringing the product to market. Read More

Aug
28
2017
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VMware Cloud is now live on AWS — and IT pros just did a little happy dance

 When VMware announced it was partnering with AWS last fall, it turned more than a few enterprise heads. After all, we’re talking about one company that dominates virtual machines on-prem, and the other in the public cloud. Together, the two companies make a powerful combination — and VMware made the whole shebang official today at VMworld when it announced that VMware Cloud was live… Read More

Aug
28
2017
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VMware expands hybrid cloud strategy with series of announcements at VMworld

 VMware, the company that gave rise to the virtual machine concept in the enterprise data center, announced a series of products and services today at VMworld in Las Vegas that show a company clearly shifting to managing hybrid environments. The hybrid strategy really began to gain momentum last year when the company forged agreements with the top public cloud vendors including Microsoft,… Read More

May
09
2017
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VMware and Google extend partnership to include Chrome OS management in Workspace One

 One of the beautiful things about owning a Google Chromebook laptop is the surprising lack of maintenance involved. The browser is essentially the OS and you connect to applications via the cloud. Everything gets updated automatically. Easy, peasy right? Well, it gets a bit more complicated when you bring a device into a mixed environment in the enterprise, and VMware announced a partnership… Read More

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