Dell’s Latest Open Letter to EMC, VMware Partners
Michael Dell has posted an open letter to partners and customers, offering three resolutions as the company works to finalize its $67 billion buyout of EMC and VMware.
In a blog, Michael Dell vows that his company will:
- Make customers and partners “the core of everything we do.”
- Accelerate innovation.
- Create a future where “we can do incredible things.”
On the one hand, the resolutions aren’t all that surprising. But on the other, they reiterate a key promise that Dell has made since his company announced the proposed EMC-VMware takeover in October 2015. Specifically, Dell has promised — again — that his company will “continue to advocate choice.” That’s his way of saying EMC and VMware will continue to work with a range of hardware, software and cloud companies — even if those businesses compete with Dell on some fronts.
Dell’s EMC, VMware Buyout Terms
Some EMC and VMware shareholders have lobbied for better, more lucrative terms as part of the Dell buyout. But it’s unclear if or how Dell will bolster the terms. EMC’s “go shop” period — allowing the company to pursue alternative, more lucrative buyout offers — just expired. And no additional suitors apparently came to the table.
Still, VMware and EMC have been taking steps to appease investors — including VMware choosing not to participate in the Virtustream joint venture offering, according to an SEC filing.
Meanwhile, Dell apparently has been taking steps to strengthen its balance sheet ahead of the EMC-VMware buyout. Indeed, Dell apparently is looking to sell its Quest, AppAssure and SonicWall businesses, with multiple private equity firms apparently involved in the bidding process, according to Reuters.
Dell, EMC, VMware Partner Programs
Dell expects the EMC and VMware buyouts to be completed in mid-2016. In the meantime, each company remains heads-down on its partner program strategies.
Two prime examples: EMC just opened registration for its EMC World 2016 conference, which will attract thousands of partners. And Dell Financial Services has been opening its wallet wider to help partners and their end-customers to consume more technology.