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August 31, 2016

Dell clears final hurdle for EMC acquisition

News: Dell's latest product announcements point to greater alignment with VMware as world's biggest tech merger finally happens.

By James Nunns

The acquisition of EMC by Dell will close on Wednesday 7th September after the $67bn deal was given Chinese regulatory approval.

This means that from the 7th of September the new company, Dell Technologies, will begin operating immediately following the close of the transaction.

Regulatory approval from China’s Ministry of Commerce was the final hurdle for the deal of the mega-merger to clear following the shareholder approval of the transaction on the 19th of July with approximately 98% of voting EMC shareholders casting their votes in favour of the merger.

Michael Dell, chairman and CEO of Dell Technologies, said: “This is an historic moment for both Dell and EMC. Combined, we will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security.”

At the closing of the deal EMC shareholders will receive $24.05p per share in cash in addition to a newly issued tracking stock linked to a portion of EMC’s economic interest in the VMware business.

Joe Tucci, chairman and CEO of EMC said: “I am proud of everything we’ve built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers.

“The combination of Dell and EMC creates a new powerhouse in the industry – providing the essential technology for the next era in IT.”

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Now that the deal is set to be completed the new company will finally be able to start putting the combined might towards developing technologies.

While the deal has taken around a year to complete, since it was first revealed, this has not stopped Dell from working on new products, as highlighted by the release of its latest effort in the converged systems market.

The Dell Validated System for Virtualisation, which the company is dubbing “the industry’s most flexible converged system to-date”, is joined by updated client virtualisation solutions for power users, while VMware has selected Dell Financial Services as its preferred financing partner.

The work with VMware is unsurprising given that the two companies have worked together for over a decade, and VMware is (was) mainly owned by EMC, so selecting Dell Financial Services as a preferred financing partner is hardly a shock.

The technology that the two have produced together is aimed at proving customers with greater manageability, flexibility, and performance for virtual desktop infrastructure (VDI) environments, the companies say.

The latest solutions include Dell Solutions for VMware Virtual SAN Ready Nodes, a hyperconverged solution for desktop and application virtualisation that delivers elastic infrastructure that is optimised for virtual desktops.

Support for VMware Blast Extreme remote display protocol will be added on Dell Windows Embedded thin clients running VMware Horizon 7 with Horizon Client 4.0. This will allow Horizon users to access their virtual desktops via a Web browser or a full-featured VMware Horizon client.

Additionally, Dell is introducing two security solutions to help provide advanced threat protection. These are Dell Data Protection, Threat Defence for Windows Embedded (WES) thin clients and Dell Data Protection, Endpoint Security Suite Enterprise for persistent virtual machines.

Dell’s Validated Systems for Virtualisation aims to offer fully customisable, modular, self-service hybrid-VMware cloud, as a proof of concept for customers before moving beyond virtualisation to cloud, the company said.

The offering has VMware vRealise Suite to help improve the delivery of services.

The Dell Validated System for Virtualisation will be released in September this year under directed availability and planned general availability in Q4 of 2016.

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