Lately, Dell has acquired EMC, a technology company specialized in data storage. This has rocked the world, becoming the biggest deal in the history of technology sector worth $ 67 billion. However, after this deal, Dell had to shoulder to pay the huge debt of 49.5 billion dollars.
With such a large debt, Dell Inc. has decided to “sell itself” to reduce the burden. According to Reuters, Dell is preparing to sell $ 10 billion of non-core assets of the company, including its software and services. The assets Dell will sell contain Quest Software – software of information technology management; SonicWall – software of security and email, data encryption for companies; AppAssure – data backup solution and Perot Systems – service related to information technology.
Dell will retain the hardware infrastructure as its hosts and services, software related to cloud and data storage. The aim is to develop this business segment after the acquisition of EMC, to be able to compete with IBM’s or Cisco’s cloud services in the future.
Dell’s representatives have yet to have any comment on this information. The discussions of the senior leaders in the company are still being kept secret.
Dell’s move is not only to reduce the debt burden of $ 49.5 billion, but it also helps the third largest computer maker in the world focus on developing the new core business area, cloud platform and data storage.
However, to develop this business as large rivals, IBM or Cisco, Dell will need a lot of time. In the short term, the company will have to focus on reducing this debt in 18 -24 months after the merger. This aim is also for the company to achieve a higher credit rating.
Founder and CEO, Michael Dell, along with Silver Lake private equity firm also had to contribute $ 4.25 billion to the amount to implement this huge deal. The remaining amount was taken from Dell’s current cash and credit financing packages from several major banks in the world.
Dell really is betting on a huge gamble when deciding to transfer from a computer manufacturing company into a platform providing cloud service and data storage. While companies such as IBM, Cisco, Amazon and Microsoft have achieved a certain position in the market, Dell will begin at the starting line.
However, the cloud business is the development trend of the world and bringing a lot of success for large technology companies like Amazon or Microsoft. Thus, despite having to face many difficulties ahead, changing in the context of the present intellectual PC market is likely to be a new path helping Dell succeed.