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Dell Sells IT Services Unit For $3 Billion (informationweek.com) 28

An anonymous reader writes: On Monday, March 28, Dell has publicly announced it is selling its IT services unit to NTT Data of Japan for more than $3 billion. The sale of Dell's IT services marks the first and largest transaction the company has taken on since it disclosed in December that it was considering divestitures to help offset its buyout of storage giant EMC, said Dell spokesperson David Frink. However, Frink cautioned that it's not fair to speculate that there will be more divestitures to come or that this will be the last, as the company moves forward with its EMC buyout deal that is valued at roughly $60 billion. The deal between Dell and NTT Data will help ease some of the financial burden of the deal between Dell and EMC. According to Frink, that mega-deal with EMC is expected to close in the August to October timeframe.
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Dell Sells IT Services Unit For $3 Billion

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  • So I just implemented a new VMware Essentials Plus installation for smallish nonprofit I work for. This news has ne a bit on edge regarding the future of VMware's lower end licensing models. Reading the article, what stands out from the standard BS is that Dell wants VMware to be a 'stronger' product from the EMC line. To me that screams 'Make more money', which, for a product of VMware's market maturity, generally means raising profits through licensing restructuring. AKA, raising prices. Having never be
    • Re: (Score:2, Insightful)

      by Anonymous Coward

      Anyone have any insight or thoughts?

      Here is some free advice: Don't risk your core business on closed source software.

      If your client is a "small non-profit", then why isn't something like VirtualBox good enough?

      • I honestly can't tell if that comment was a poor attempt to troll or a real suggestion... Regardless, my response is that some of us have to live in the REAL world and implement REAL solutions for business critical infrastructure.
    • by Junta ( 36770 )

      VMware has already been down the path of starting to neglect/retire lower cost options, and raise prices on their core products. They already were eager to have high-margin, but now the pressure is *really* on to gouge their 'captive' customer base for more money.

      For a 'smallish nonprofit', you'd nearly certainly be better off with either CentOS/RH or Hyper-V, depending on your inclinations. Actually this is the particular problem Dell faces. They seem very enthusiastic about VMware, but I see vmware's p

    • by SQLGuru ( 980662 )

      VMWare is a different company than EMC. EMC owns a large percentage of it (controlling interest). Dell's offer (at least originally) would continue the separation of the companies. Obviously, with controlling interest, it would be easy enough to make the vote of the VMWare board go in whatever direction they wanted. But short-term, you shouldn't have to worry.......it will be at least a year after the EMC deal closes before they make many drastic changes.

  • by Junta ( 36770 ) on Monday March 28, 2016 @06:59PM (#51795925)

    Though Dell is not the biggest of players in that space, that seems like the most 'clingy' sort of customers. If you truly have outsourced your IT, it's very challenging to change your vendor, since you by definition opted not to have the in-house skills needed to be able to do that.

    Compare that to any hardware/software solution, where the client retains enough in-house to be able to say 'You know what, we can switch vendors and here's what the cost picture looks like'. This includes EMC gear.

    Also interesting that Dell acquired this division in 2009 for 3.9B. They lost 900 million dollars on the effort.

    • Compared to how most big corporate acquisitions these days turn out, only losing $900 million seems like they actually came out ahead.

      Look at how Nokia turned out for Microsoft or Motorola did for Google.

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