USA Today, CNET, NY Times

Why Dell Computer is Buying a Company Most of Us Haven’t Heard of in the Biggest Tech Deal in History — $67 Billion!

Oct 12, 2015  •  Post A Comment

In a deal that would be the largest in the history of the tech industry, “Computer techology giant Dell and private-equity firm Silver Lake will buy data storage provider EMC for roughly $67 billion, a $33.15-per-share deal,” USA Today reports.

So what exactly does EMC do? According to CNET, it has “products designed to store, streamline and manage vast quantities of data.”

Why is that important to Dell?

Again, here’s how CNET explains it: “In the heyday of the PC market in the 1990s and early 2000s, Round Rock, Texas-based Dell was one of the shining stars. It was a leader in PC sales and a fixture of TV commercials featuring a hyperbolic 20-something who proclaimed, ‘Dude, you’re getting a Dell!’

“That excitement vanished as tablets and smartphones took over as the must-have gadgets for consumers. Sales of PCs have been anemic for the last several years in what has become known as the ‘post-PC era,’ and Dell’s position has receded. In the third quarter, Dell was No.3 in the PC market worldwide with 14.3 percent market share, behind market leader Lenovo with 21 percent and HP with 19.6 percent, according to market researcher IDC.”

Says The New York Times’ Dealbook: “No longer can a company like Dell thrive simply by making personal computers, the business that its founder began in his dorm room three decades ago. [Michael] Dell recognized that when he and Silver Lake took the company private two years ago, with the goal of continuing to move toward corporate computing services away from the glare of the public stock markets.

“Buying EMC would give Dell one of the biggest names in computer data storage, adding to existing offerings like network servers, corporate software and mobile devices.”

In other words, the idea is that the deal makes Dell more competitive with IBM and HP.

The Times story quotes Michael Dell saying in an interview: “We’re continuing to evolve the company into the most relevant areas where IT is moving. This deal just accelerates that.”




  1. This article provides no answers. It’s still unclear what EMC does exactly.

    • Hi Cal. How’s this: What I gather from the various articles we cite and from what we’ve excerpted, EMC is a company that provides products and services that can manage and store data from businesses. Dell, as we know, makes computers. With the PC market slowing, Dell now wants to become a player in the business that manages and stores data as well. Hope that helps.

      Chuck Ross

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