I’m not a stock analyst, and this is merely my own quick calculation, but this doesn’t seem like a good deal for shareholders. Dell walks away with a huge amount of value and shareholders are left hoping for the best. No wonder shares of EMC are still well below the alleged “$33.15 per share” offer price! Right now, it looks like they’re valuing that VMware tracking stock at only $4 per share, not the $9 Dell hoped.
VMware is in an enviable but tricky situation: The company must work closely with hardware partners, keeping these prime sales and promotional channels happy and supportive. But VMware must also innovate around proprietary OEMs, subverting their products with integrated software before a rival steps up with an integrated alternative.
Release after release, Microsoft pushes Windows forward. Yet the operating system is continually undermined by the “value-focused” low-end machines pushed by the majority of OEMs. This race to the bottom has tarnished Windows for a decade and now threatens to derail Windows 8. Microsoft must do something to stop the crap before it’s too late!
Cisco made a massive strategic blunder in the last decade, aggressively moving into consumer devices rather than focusing on their core enterprise and service provider markets. It seems that Cisco is now in the process of rectifying this mistake, but charting a path to growth is an entirely different matter!
Dell invited me to attend their Dell World conference in Austin, Texas last week, and it was an enlightening experience.