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Impact of EMS and Dell Collaboration on VMware

Dell, a world-renowned server maker, has taken another step ahead to grow bigger in the IT industry. In the most recent development, EMC has been acquired by Dell on a deal of US$67 billion. Michael Dell will head the collaboration as the chairman and CEO of the merged firm.

With Dell buying EMC, there has been a significant change in the operation of its associated firm named VMware as well.  As declared by Dell, VMware will continue to be an independent publicly traded company. According to the terms and conditions of the deal, whole lot of shares in VMware tracking stock will now be moved to EMC shareholders. However, Pat Gelsinger will continue to run VMW.

VMware, Inc., trading as VMW, is a virtualization software company based in the United States of America. It is one of the first companies that virtualized the x86 architecture in the commercial arena. EMC had bought the company in the year of 2004 making it a part of the imposing EMC Corporation. However, in 2007, 15% of VMware was sold by EMC in a New York Stock Exchange IPO. Currently, 83% of the stock of VMware are owned by EMC.

In the last two years, there has been a significant growth in the VMware rank in the industry. A software named EVO was developed by VMware for the purpose of converged infrastructure environments management. With the application of this software, computing, networking and storage can be managed in one hardware appliance only. As per the past working principles of VMware, the task to run the software was assigned to any random vendor, primarily on the basis of its technical amenities.

After Dell has possessed EMC, there is a possibility that the big firm may have a new plan of action that may set VMware to have in line a specific hardware supplier for managing EVO software.

This collaboration was quite surprising because Dell has also been in a long association with Nutanix. Nutanix, like VMware, is a well-known company that renders virtualization services. Also, it provides cloud services to its clients. Dell being in partnership with two competitive companies at the same time may encounter some major challenges.

With the possession of EMC, Dell will have better grounds to rule as an IT vendor. It will now have expertise in all the essential skill set, including hardware, software and data center. It will be highly beneficial for the users as well. It will involve single company in the process of manufacture and processing making prices go lower at various levels.

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