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Dell: Quest Layoffs Amid Software Sale?

As Dell Technologies seeks to finalize the Quest Software and SonicWall asset sales, rumors are swirling that the relaunched Quest Software will soon cut portions of its staff and product portfolio.

According to The Register:

“Persons familiar with the company’s plans tell us that plans are in place for considerable redundancies and relocations not long after the deal closes. Development groups outside the USA, and possibly some within, are slated for relocation to lower-waged destinations. Some products will be discontinued, with the Foglight application monitoring tools toward the top of the list.”

Representatives from Dell, Quest and Quest’s pending private equity investors declined to comment. Dell Technologies, meanwhile, cut 2,000 to 3,000 employees of its own employees after completing the EMC buyout in September 2016.

Quest Software Emerges Again

As ChannelE2E previously reported, Quest and SonicWall are expected to have private equity owners by November 2016. Partners are cheering the SonicWall deal, in particular, since that security business will be free of Dell bureaucracy — shedding direct sales and returning to a pure channel model.

Less is known about Quest Software’s future as an independent company. When Dell acquired the business in 2012, Quest had a mix of IT management and automation tools. Many enterprises leverage the tools for IT monitoring, database management, virtualization and more.

> Related: A list of technology company layoffs in 2016 and beyond

The problem: Many of Quest’s offerings were for traditional desktop and server management — rather than multi-tenant cloud management. Companies like AppDynamics, Datadog and New Relic have since popped up to fill that void.

Missed MSP Opportunity

Ironically, Dell in 2013 killed off some of Quest’s recurring revenue platforms — including a PacketTrap division that offered RMM (remote monitoring and management) and PSA (professional services automation) to MSPs. Rivals in that sector — particularly Autotask, ConnectWise, Continuum, Kaseya and SolarWinds MSP — now dominate that market area. The PacketTrap team, by the way, has resurfaced at NinjaMSP.

So where does Quest go from here? The company still has a comprehensive portfolio of IT management tools. And it’s a safe bet the business is closely studying MSP and CSP workload management opportunities. But the full story won’t likely emerge until Quest is under private equity ownership in November 2016.

For a complete list of technology industry layoffs and Silicon Valley job cuts, see ChannelE2E.com/layoffs.

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