Dell may be best known as a business that makes PCs for home and business use. But the company also has a strong server business, and now Dell is making a big play for the enterprise market. Dell has announced plans to acquire EMC Corporation in a deal worth $67 billion.
EMC is best known… well, if you don’t follow this kind of stuff you might not really know EMC. The company offers data storage, cloud computing, and virtualization solutions, among other things. It’s a big business: EMC has over 70,000 employees.
Dell, which transitioned from a publicly-trade company to a privately managed one in 2013, says the merger of the two companies “will create the world’s largest privately-controlled, integrated technology company.” The deal is expected to be completed sometime between May and October of 2016.
Interestingly, one of EMC’s better-known subsidiaries will continue to operate as a separate, publicly-traded company. VMWare offers consumer and enterprise virtualization technology.
Traditional PC sales haven’t really been much of a growth market in recent years, so it’s not surprising that we’re seeing PC makers branch out into new territory. While some, like Acer, Asus, and Lenovo, have been building up their smartphone businesses, others, like HP and Dell have been looking to expand their enterprise offerings (although HP is doing that, in part, by splitting into two separate companies).