In the three years prior to the dissolution of the partnership, Dell invested more than $2 billion to expand its own family of storage products, much of which focused on storage virtualization and cloud-based data centers.
While Dell has the steering wheel in its buyout of EMC, it will hopefully recognize EMC's expertise in executing mergers and seek advice in how best to integrate the two companies. EMC is the merger king; it knows when to tightly integrate and when to keep its mitts off a company, as it did with VMware. By allowing VMware autonomy, it continued to thrive and was EMC's most profitable business unit.
Along with VMware, EMC has its storage business, its data center software business, VCE converged infrastructure unit and Pivotal, its Apache Hadoop distribution business. It also has RSA Security and an application development business.
Dell also brings to the table a wide array of entry-level and mid-range storage products, along with its massive server business, a security solutions division and a huge sales force.
These two companies have the expertise, sales force and technologies to make this merger work. As always, the proof will be in the execution.
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