The very senior managment of Dell, EMC and Silver Lake, the private fund behind Dell, all talked up the advantages of private ownership allowing it to make long term strategic investments without having to please the equity markets every three months.
The company will use private status to execute long term investment plans to address the disrupted IT industry it said in its post merger analyst call.
Egon Durban, Managing Director, Silver Lake, the private investment fund which owns Dell said: "As the investor we think this is unique in every respect. It is very rare to have a first mover advantage in disruption. We are the market leader with a capital base which makes us, from a financial standpoint we are the largest by far addressing the enterprise customer market particularly against the trends outlined. It is highly attractive for long term investment without the pressures of quarter results to the market."
Michael Dell, CEO said there would be an announcement of a signfiicant partnership later today (Monday Oct 12th).
In its post-merger analyst call following confirmation of its $67bn takeover of EMC Dell talked up synergies, complementary product lines and distinct target markets, Dell in the mid-market, EMC in the enterrprise.
Without saying ‘Internet of Things’ Joe Tucci CEO EMC referred to sensors being built into ‘everything imaginable’ and the consequent data requirement. The older side of IT is being very quickly disrupted but which gives opportunities, he said.
Tucci said to get to the get new trends and create a difference with the ‘mothership’ being private is ‘attractive.’
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Dell said: "Dell brings strength in small business and medium markets and this complements the enterprise strength of EMC. We have a growing commercial infrastructure franchise from desktop to data centre to cloud."
He said: "We have had great support from banks, fully committed finance. In the first 18 to 24 months expect to see significant deleveraging, cost saving, and strong cash flows."
The company he said was gaining market share since being taken private but the firm doesn’t disclose figures. Dell said: "In the last six months we’ve added 2,000 new sales people. We can make investment which may not have an immediate return."
The firm, he said, has more than 20,000 salespeople.
VMware, which is 80% owned by EMC will remain as a publicly listed company.
