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Dell vs. Hewlett Packard Enterprise - Does size really matter?

James Henderson | Sept. 6, 2016
The Dell-EMC acquisition runs against recent trends toward exiting product businesses or disaggregation

“Navigating increasingly co-opetitive alliance models will increasingly influence HPE’s ability to continue improving its financial performance,” Macomber explained.

“Additionally, HPE will continue to invest in innovation areas such as automation, centralisation and scalability while messaging comprehensive IT modernisation support for customers.”

Ding Ding…

In the five years that Whitman has took the wheel at Hewlett-Packard, the formidable tech leader has significantly changed direction, breaking the tech titan into three.

First came the much-publicised split, giving birth to both Hewlett Packard Enterprise and HP Inc, and most recently came its Enterprise Services spin off with solutions and services provider CSC, in a $US8.5 billion deal.

Mocked on stage at EMC World 2016 in Las Vegas, Michael Dell proclaimed that the tech giant is “shrinking their way to success”, with the high-level slanging match refusing to go away.

Yet as HPE chases nimbleness, for Dell, balancing and redirecting the energies of two traditionally hardware-focused corporations into a new software-centric entity will impact every facet of both companies.

“The sheer size and breadth of the Dell-EMC entity makes for a difficult marriage,” Woollacott cautioned. The new company will be significantly larger, therefore likely less nimble.

“Sales force, channel programs and systems integrators relationships, and their respective combinations, will be among the most visible and important of the outward-facing Dell-EMC changes.”

But as Michael Dell put it to staff days after announcing the acquisition, for Dell, 2016 is a case of - “go big or go home; and we're going big, baby.”

Irrespective of industry alliances however, the channel acknowledges that this fight for supremacy will go down to the wire, yet as the blows trade and the rivalry intensifies, who will be left standing?

 

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