PC maker Dell has announced it’s buying out storage giant EMC for $67bn, the largest buyout in tech history.
As PC hardware sales continue to drop and cloud-based services continue to grow replacing on-premise hardware, this is likely only the first mega merger in a continuing trend as ‘traditional’ IT hardware companies re-invent themselves to adapt to the changing cloud-based marketplace.
Rumored since this summer, announced today. The joint initiative will pull in resources from Cloud Foundry, Spring, Gemfire and Big Data resources from VMware and EMC.
More info in this article on Ars Technica.
This is unexpected: according to sources, GigaOm say VMWare is taking a new CEO from majority shareholder EMC and is spinning off their PaaS offering, Cloud Foundry. These changes are expected to be announced during their second quarter earnings call on July 23rd.
Rumors can always turn out to be nothing but a rumor, but GigaOm’s opinion on this move is that they’re attempting to distance Cloud Foundry’s association from VMWare and EMC, which may be holding back adoption of their service compared with other IaaS and PaaS offerings, since some perspective Cloud Foundry customers may be put off by the perceived platform lock-in by Cloud Foundry using VMWare and/or EMC products. Interesting point of view – have to see how this one turns out.