UPDATED 11:07 EDT / MAY 03 2016

NEWS

Dell to rebrand after EMC acquisition

Despite the fact Dell Inc.’s proposed $67 billion acquisition of EMC Corp. must still clear several major hurdles before it can become official, the vendor’s leadership team is already preparing for the day the deal is approved. In a public letter to employees released on occasion of the storage giant’s annual user summit this week, Michael Dell revealed that the combined company will adopt a new naming structure to reflect its increased organizational complexity.

First, the vendor’s umbrella brand will be changed to Dell Technologies Inc. and its expanded enterprise division will assume the name of “Dell EMC” in a nod to the acquisition. Though it’s not spelled out in the letter, the reasoning behind the latter decision can be deduced fairly easily: As the world’s single largest array maker by sales, the storage giant is too big of a force to be simply assimilated like a regular buyout target. That’s especially true given how many of its subsidiaries similarly lead their respective market segments.

VMware Inc. dominates the virtualization market with its server hypervisor, while VCE generates more revenue than any other converged infrastructure vendor in the industry. And EMC’s RSA security division provides software that protects thousands of the world’s largest companies from hacking. According to the latter, the new enterprise division is also set to include Pivotal Software Inc. and SecureWorks Inc., which was acquired by Dell in 2011 and recently started trading on the stock market as a public company.

Though the rebranding will undoubtedly be a central talking point for attendees at EMC World, it’s the least of the changes that will affect the companies as a result of the acquisition. Both the storage vendor and Dell have been laying off employees to reduce the overlap among their once-competing businesses, and the latter is even going as far as selling off some of its smaller divisions. In the first such move, the company last month offloaded Perot Systems Inc. to Japanese professional services giant NTT Data Corp. for $3.06 billion, $900 billion less than it paid to acquire the consultancy seven years ago.

Image via siliconangle.tv

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