What does the offload of Dell Software really mean in the context of Infrastructure Virtualization?

What does the offload of Dell Software really mean in the context of Infrastructure Virtualization?

Michael Dell has set the wheels in motion to offload Dell Software to Fransisco Partners and Elliot Management. The sale is reported to be $2.4 Billion, which will no doubt assist in financing the massive $67 Billion acquisition which is about to close. 

But what exactly is he offloading? A recent job description reveals the extent of what will be sold: " Francisco Partners and Elliot Management plans to acquire Dell Software (except Boomi) as announced on June 20, 2016. If you are selected for a Dell Software (except Boomi) position and the transaction closes, your future employment will be with the new company created by this transaction."

This particular job description is for a position in the Foglight Virtualization Monitoring and Application Performance Monitoring domain. 

This is interesting as it removes potential overlap in the new "family" of companies. Michael Dell is removing potential conflicts with the VMware portfolio of products.

The sale of SonicWALL will also remove any potential conflict that the security ecosystem could face in its fastest growing division - the Network and Security Business Unit. NSX has become VMware's fastest growing product ever!

 

VMware is the only component of the purchase that will remain publicly listed and ostensibly will be kept at arms length. Michael Dell seems however to be making the very canny move of making sure he doesn't have one wing of the business competing with what is potentially his biggest earner going forward.

 

Francois vd Merwe

"Over Qualified Professional Quantity Surveyor | Maximizing Value and Minimizing Costs for Your Projects"

2 年

Gareth, thanks for sharing!

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