Did EMC dodge a bullet in the failed merger with HP?

sc-budget-and-control-board-missed-targetSo, the year-long merger talks between Hewlett-Packard and EMC have gone south, and the two will not be merging to create a tech company larger than IBM. And it wasn’t EMC’s $60 billion price tag, there’s still a lot of room in the Silicon Valley bubble yet.

They simply couldn’t agree on terms that would satisfy HP’s shareholders, or EMC’s investors who pushed for the merger to see their stock soar.

Where do they stand now, these two? Still rivals in the converged infrastructure market, they’ll continue to team up on complementary solutions that neither can offer independently. HP has the storage solutions, servers and desktops everyone wants, while EMC is virtualizing practically everyone’s data management through its crown jewel, VMware.

It’s good to keep your friends close and your competitors closer.

Now, it takes a triumvirate to make for good drama. HP and EMC are allies in a common battle against Cisco, which is currently being downsized and downgraded by CEO John Chambers as he prepares to retire in 2016. They’re missing targets, cutting thousands of jobs and losing share value, the equity they need to aggressively invest in their business and outpace the other two.

They’re a limping gazelle on the Serengeti, with two cats panting in the grass.

But don’t cringe just yet. This will take some time to play out. HP will remain the powerhouse it is, while EMC will run the world’s data centres. But here’s the kicker: I see a strong likelihood of Cisco and EMC merging. Give it two years.

What’s your take? Where do you see the converged, virtualized big data world heading? Please feel free to weigh in below.

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About johnjblair

John J. Blair is the President and CEO of Blair Technology Solutions responsible for technology, innovation, and providing customized IT strategies to strengthen operations for enterprises across various industry verticals. His reputation is renowned as a results-driven leader, whose effective team-building skills and strategic development expertise have helped his clients achieve IT business success with cost-effective solutions. With almost 35 years in the IT industry, John has established a highly skilled team with expertise in providing personalized and customized IT solutions to a variety enterprises across Canada. Under his tutelage, his company is committed to customer service excellence, providing IT professional technicians to support the ongoing growth and needs of any IT department. Always on the leading edge of emerging technologies, John entered into the Managed Services field early and developed a Managed Services division under the Blair brand. John holds a Bachelor of Commerce from Concordia University and has many industry certifications.
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