Pure next in line to put boot into Dell
This moves comes out of ‘weakness, not strength’, claims CE Dietzen
In a blog post Scott Dietzen, chief executive of Pure, said the transaction "comes out of weakness, not strength".
He said: "Dell has been exposed to the same disruption in the PC and server market that encouraged IBM to spin out its business to Lenovo and HP to split in two."
It's worth noting that all of the companies to critique the deal have a competitive interest in drawing attention to the lack of wisdom of the move ... so, a really large pinch (or pinches) of salt is (are) required.
"As an independent public company, EMC is facing a comprehensive turnover in its storage portfolio as flash memory and cloud make for the biggest disruption in storage since EMC seized the market lead," Dietzen added.
"If EMC’s pre-announcement yesterday of weaker-than-expected September quarter earnings is a harbinger of the future, then perhaps such dramatic actions to attempt to right the ship are justified," he added.
He also said the deal signals the end of an era: "EMC has been a leader and an iconic brand in the storage industry, leading the market for Tier 1 or performance optimised storage for a couple of decades. Just a few years ago, the idea that EMC would be an acquisition target would have been unthinkable ... and yet here we are."
According to Dietzen, the level of debt in the deal is "unprecedented" and will inevitably lead to lay-offs. "We would expect to see redundant and less successful product lines eliminated, with future investment in flagships like Symmetrix/VMAX, VNX and Compellent potentially at risk," he said. ®
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